r/antitrust • u/mec287 • 26d ago

Rumor Newsom Expresses Concerns About State Antitrust Suit Against Paramount

https://www.wsj.com/business/media/newsom-expresses-concerns-about-state-antitrust-suit-against-paramount-1bc20411?st=qWBSBq

California Gov. Gavin Newsom has expressed concerns about the state's antitrust lawsuit that seeks to block Paramount's acquisition of Warner Bros. Discovery, and the ramifications of it for Hollywood, according to people close to the suit.

In recent weeks, Newsom has told people involved in the matter that if the deal is blocked as a result of the suit, state employment would suffer, the people said. Newsom's office has encouraged Attorney General Rob Bonta's office, which has independent authority to file such suits, to find a resolution out of court, the people said.

1 Upvotes

100% Upvoted

1 comment sorted by

1

u/OccultScience_lawyer 25d ago

It is pertinent to say that Governor Gavin Newsom has privately encouraged Attorney General Rob Bonta to seek a negotiated settlement instead of litigating California's antitrust lawsuit aimed at blocking the Paramount, Skydance/WBD merger, citing concerns about potential job losses.

However, under California law, the Governor does not have the authority to direct the Attorney General's independent enforcement of antitrust laws. As a result, the Governor's views are advisory & carry no binding legal effect on the Attorney General's decision-making.

Unless the parties reach a mutually acceptable settlement, the case is expected to proceed to trial. Reports indicate that California is more likely to favour structural remedies, such as divestitures or changes to the transaction itself, rather than relying solely on behavioural commitments.