California's Bonta 'looking closely' at broadcast TV mergers

California's Bonta 'looking closely' at broadcast TV mergers

California Attorney General Rob Bonta has stated that the proposed $111 billion merger between Paramount and Warner Bros Discovery (WBD) remains under active investigation, emphasizing concerns over market concentration, job cuts, and reduced competition. Bonta highlighted that major corporate consolidations risk “increased prices, lower wages, reduction in competition, limits in choice, and lower quality”. The state’s scrutiny follows Paramount’s acquisition of WBD, which would consolidate two of the last five major film studios, potentially reducing competition in the entertainment sector.

The deal, which Paramount CEO David Ellison has described as “pro-competitive” and beneficial to consumers and creators, faces pushback from California’s antitrust enforcers. Bonta noted that federal regulators appear to be “rubber-stamping” the merger, while California will conduct its own “thorough and comprehensive” review. The state has a history of challenging large mergers, including past efforts to block T-Mobile’s acquisition of Sprint and Kroger’s takeover of Albertsons.

Public interest groups have also urged state attorneys general to block the deal, arguing it would create “a more concentrated market” and harm workers and consumers. Paramount’s projected $6 billion in cost synergies—often interpreted as job cuts and supplier renegotiations—has raised alarms about economic impacts in California, a hub for the entertainment industry.

While federal approval seems likely due to Paramount’s political ties and cleared regulatory hurdles, Bonta indicated that California and potentially other states may pursue joint action, mirroring recent challenges to Trump-era policies. The outcome remains uncertain, with the AG stressing that “it’s not a done deal”.