California Attorney General Rob Bonta took a shot at President Donald Trump on Thursday as he announced a probe into the massive $110 billion merger between Paramount Skydance and Warner Bros. Discovery.
Speaking at a Beverly Hills conference, Bonta said his office has launched an investigation into the blockbuster Hollywood deal and plans a vigorous review of the proposed takeover.
The Democrat accused the federal government of stepping back from its role as the nation’s top antitrust enforcer, saying states may have to step up if Washington does not challenge major corporate mergers.
“The federal government is just not enforcing the law,” Bonta said, warning that states could become the last line of defense against growing corporate power the LA Times reported.
The deal is being spearheaded by Skydance chief David Ellison and financially backed by tech billionaire Larry Ellison. If completed, the transaction would combine Paramount’s movie and TV empire with Warner Bros. Discovery’s vast portfolio of studios, cable networks and streaming platforms.
The combined company would bring together major film studios, dozens of TV channels and prominent news outlets including CNN and CBS News. It could also place streaming services Paramount+ and HBO Max under the same corporate umbrella.
Supporters say the merger would help traditional Hollywood studios compete with deep-pocketed tech companies like Netflix and Amazon that dominate the streaming wars.
Critics argue the tie-up could reduce competition and lead to job cuts as overlapping operations are consolidated.
And it’s not just regulators sounding the alarm, union muscle is now rolling into the fray. The powerful International Brotherhood of Teamsters hauled out its biggest guns this week, urging the U.S. Department of Justice to slam the brakes on the Paramount-Warner tie-up unless ironclad job protections are guaranteed.
Teamsters brass blasted the deal as a “power grab” that would leave rank-and-file workers holding the short end of the stick, warning that Hollywood’s blue-collar backbone could be gutted if corperate bosses get their way.
Hollywood insiders are already bracing for potential layoffs and executive shakeups if the companies merge their businesses.
Bonta said California regulators plan to closely examine how the deal could affect jobs, wages and competition in the entertainment industry.
Even if federal regulators approve the merger, Bonta said California could still move to challenge the deal or push for charges.
The proposed acquisition still needs approval from regulators and Warner Bros. Discovery shareholders before it can move forward.
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