California Gov. Gavin Newsom is pushing back as frustration grows over a settlement that cleared a major hurdle for Paramount Skydance’s planned purchase of Warner Bros. Discovery.
Newsom was confronted by reporters who asked if he pressured Attorney General Rob Bonta to settle a California-led antitrust lawsuit to block the merger. The governor denied turning up the heat on Bonta.
“I didn’t pressure anybody,” Newsom said.
“I made the point and made it very publicly and consistently, and it’s been reported maybe two or three hundred different ways, that we, me, many folks, including the mayor and soon to be elect governor [Xavier] Becerra and others preferred, in the words of Rob Bonta himself, that he focus on getting this done in the boardroom not the courtroom,” he told reporters.
“The minute that Rob said that on CNBC, we amplified that, said this was a better approach,” Newsom added. “So that was the framework, and he worked hard to deliver for California and I think he did.”
Axios reporter Alex Thompson posted video of the exchange to X on Wednesday, Sept. 23.
The reaction was swift, with critics in the comments saying Newsom “folded,” and described him as “out of touch” and “slimy.”
Details of the Settlement
As Urban Hollywood 411 previously reported, Bonta and attorneys general from 11 other states reached a settlement with Paramount on Monday, ending their lawsuit against the company’s planned $110 billion acquisition of Warner Bros. Discovery.
Under the agreement, the company must produce at least 30 films over each of the first two years after the deal closes and 32 films annually over the following three years.
Paramount also agreed to invest $300 million a year for five years to expand film production in the U.S. The $1.5 billion investment is expected to increase the number of films the company produces domestically. According to Bonta, the company currently makes only about 5% of its films in the U.S.
Paramount’s Response
Paramount Skydance CEO David Ellison expressed optimism that the merger will increase opportunities for the creative community.
“There’s still work ahead to get this deal across the finish line, but we’re excited to bring these two iconic companies together, as it means more opportunity for our creatives, production crews and employees across the business, and more great entertainment for audiences everywhere,” Ellison said in a statement Monday.
But the deal has drawn backlash from people worried about the Trump-backed Ellison family owning CNN and CBS. There are also concerns about media consolidation, higher prices for consumers, and the job losses that will likely follow when the companies combine operations.
Political Opposition
In August, Los Angeles County leaders released a study on the potential economic impact of the merger, saying “4,500 local film and TV jobs” will likely be impacted. When you factor in adjacent jobs like catering, transportation, clothing sales and dry cleaning, “10,360 total jobs” are at risk, the report said.
“This report confirms what we feared: 4,500 direct film and television jobs, more than 10,000 total job-years, and $4.06 billion in business output are at risk,” said county Supervisor Lindsey P. Horvath. “Los Angeles has already lost too many jobs, too much production, and too many people who make this industry possible. We cannot afford to lose another generation of Hollywood workers.”
New York City Mayor Zohran Mamdani this week called the merger a “shameful monument to corruption,” while Hollywood workers have protested the settlement over its potential impact on jobs.
Newsom’s denial came amid reporting that California leaders urged Bonta to reach a deal after Paramount raised the possibility of leaving the state.
What’s Next
According to Variety the federal judge overseeing the now-settled challenge to the merger will hold a hearing on Thursday, Sept. 24, “to address certain outstanding questions regarding the factual and legal underpinnings of the parties.”
Once the judge clears the way, the merger is expected to take effect next month.
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