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Rob Bonta, Facing Skeptics, Defends ‘Very Strong’ Paramount Deal
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In Short: California Attorney General Rob Bonta defended the antitrust settlement allowing Paramount to merge with Warner Bros., emphasizing job creation and production certainty.
California Attorney General Rob Bonta defended the antitrust settlement that allows Paramount to merge with Warner Bros., emphasizing that the deal provides certainty for production in Los Angeles and will result in more jobs. Bonta noted that Paramount had committed to increasing domestic production and not selling its Los Angeles lots for at least five years, contrasting this with the Disney-Fox merger, which led to reduced production.
Bonta argued that the outcome of the Paramount-Warner Bros. merger is 'dramatically different' from the unchallenged Disney-Fox deal, which antitrust authorities did not contest and subsequently reduced production. He highlighted that all 12 states signed on to the settlement, indicating a broad agreement on the terms.
During a press conference, Bonta downplayed the pressure Paramount exerted during negotiations, including threats to relocate to Tennessee and seeking a court order to force the 12-state coalition to pay $1.88 billion for delaying the deal. Bonta maintained that the settlement includes 'very strong remedies and commitments' to address the concerns raised by the states.
When asked about the key moment or provision that unlocked the deal, Bonta struggled to provide a timeline, emphasizing that the settlement was the result of extensive negotiations. He acknowledged the risks of going to trial, noting that courtrooms always have uncertainties, and emphasized that prolonging the case would create 'uncertainty' in Hollywood, an issue raised by Paramount and some labor unions.
Bonta emphasized that the focus was not on the potential relocation threats but on the benefits of the settlement, including increased production and job creation. He noted that the A.G.’s victories in court put pressure on Paramount to offer significant concessions, leading to a more favorable outcome.
Background
Actor Mark Ruffalo is intensifying his campaign against the proposed Paramount-Warner Bros. merger, urging California Attorney General Rob Bonta not to cave to settlement talks.
What's still developing
- Nothing material beyond the confirmed record.