Paramount Skydance CEO David Ellison’s bid to take over rival Hollywood studio Warner Bros.Discovery moved closer to the finish line last week after the Justice Department signed off on the $110 billion deal.
Paramount swiftly vowed to finalize the merger “as soon as possible.”Subscribe to read this story ad-free Get unlimited access to ad-free articles and exclusive content.But in the eyes of California’s top law enforcement official, the show isn’t over.“The merger of Warner Bros and Paramount is not a done deal and remains under investigation by my office,” California Attorney General Rob Bonta said Friday.Inside the entertainment industry, all eyes are now on Bonta and other state attorneys general who could sue to halt the merger under state and federal anti-monopoly laws.New York Attorney General Letitia James’ office is probing the deal as well, according to a person familiar with the matter, and other states are reportedly part of that endeavor.“The most direct tool available to California and New York is an antitrust lawsuit seeking an injunction to block the transaction,” said Scott Wagner, the co-head of antitrust practice at law firm Bilzin Sumberg.
“State attorneys general have independent authority to challenge mergers even when federal regulators decline to do so.”Bonta’s and James’ spokespeople declined to comment on the status of potential legal challenges.California Attorney General Rob Bonta in San Francisco on Feb.17.Jason Henry / Bloomberg via Getty Images fileThe tie-up between Paramount and Warner would consolidate ownership of two historic film studios, two popular streaming platforms and a sprawling portfolio of broadcast and cable assets under Ellison, a 43-year-old media executive and the son of billionaire Oracle co-founder Larry Ellison, an ally of President Donald Trump.The transaction would also bring together two news organizations, CBS News and CNN, amid mounting scrutiny on the younger Ellison’s a...