What To Watch For
California Attorney General Rob Bonta is gearing up to lead multiple states in a potential lawsuit challenging the merger, according to multiple outlets, with Bonta’s office telling the Los Angeles Times, “The Paramount acquisition of Warner Brothers remains an active investigation, and we do not have any updates to share at this time.” Paramount said earlier this week it would “fight against any attempt to derail a deal that plainly benefits consumers, creators, and the industry as a whole.”
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Key Background
Paramount became the lead suitor for Warner Bros. after Netflix refused to match an offer it made in February. Netflix, which only sought to acquire Warner Bros. studio and streaming businesses, said the merger “was always a ‘nice to have’ at the right price, not a ‘must have’ at any price.” The Paramount-Warner Bros. merger is heavily bankrolled by billionaire and Oracle co-founder Larry Ellison, an ally of President Donald Trump who provided a $40 billion irrevocable personal guarantee to secure equity financing for the deal. Democratic lawmakers have accused Paramount leadership of appeasing the Trump administration by making multiple changes to its flagship news network, CBS News, in order to allegedly increase the odds of the Warner Bros. merger being approved. Paramount executives have dismissed the allegations.
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Further Reading
Paramount Poised To Acquire Warner Bros. After Netflix Refuses To Match New Bid (Forbes)
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