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CA AG Probes Warner Bros. Discovery Deal
28 Feb
Summary
- California AG Rob Bonta is investigating the Warner Bros. Discovery deal.
- The $111bn merger faces concerns over monopoly power and job losses.
- Lawmakers like Senator Elizabeth Warren are raising antitrust alarms.
California's Attorney General Rob Bonta has launched an investigation into the proposed $111bn merger between Paramount Skydance and Warner Bros. Discovery. This action comes shortly after Netflix abandoned its own acquisition plans for Warner Bros. Discovery.
Bonta stated his department intends a "vigorous review" of the deal, highlighting potential antitrust issues. The merger requires approval from U.S. and European regulators. Paramount's offer, valued at nearly $111 billion, is expected to raise concerns about substantial job cuts in California due to "synergies," a common euphemism for layoffs and cost reductions.
Paramount CEO David Ellison expressed satisfaction with the Warner Bros. Discovery board's affirmation of their offer. However, the deal is facing significant backlash. Senator Elizabeth Warren has labeled the merger an "antitrust disaster" that could lead to higher prices and reduced consumer choice. She questioned potential White House influence on Netflix's withdrawal from its bid.
Hollywood figures and unions, such as actor Mark Ruffalo and the Writers Guild of America, have also voiced opposition. They point to past mergers leading to job losses, reduced wages, and decreased product quality. The Writers Guild specifically cited layoffs after Warner Bros. merged with Discovery and subsequent layoffs following Paramount's merger with Skydance.
