Attorney General Bonta Caves to Pressure from Billionaires and Gavin Newsom, Paves Way for Disastrous Paramount-Warner Bros. Mega-Merger

According to Bloomberg on Monday, California State Attorney General Rob Bonta and other state attorneys general have reached a settlement of their antitrust lawsuit against Paramount Skydance’s $111 billion takeover bid for Warner Bros. Discovery.

According to the report, the settlement creates a nominally independent editorial board to oversee CNN and CBS, and makes promises on the output of the combined studios’ movie production. Bloomberg does not report any divestitures of the merged companies’ massive cable channel portfolio.

These minor concessions are largely unenforceable behavioral remedies that Bonta had previously denounced, and in some cases promise less than the two companies are already doing as standalone competitors. They came after Paramount owner David Ellison made multiple threats to move the studio out of California unless the attorneys general dropped their lawsuit. Previously, Bonta had maintained he’d only accept structural remedies, which block the merger or involve companies selling off significant parts of the combined businesses.

In August, California Governor Gavin Newsom indicated that he’d like Bonta to settle the case, despite growing public concern over the many harms such a deal would bring: widespread entertainment industry layoffs, spiraling consumer costs and increased censorship of news on CBS and CNN. Bonta reportedly was holding strong until a couple of days ago, when closed-door negotiations with Paramount ramped up.

Free Press Co-CEO Jessica J. González said:

“We are disappointed that Attorney General Bonta went back on his promise to enforce the law and protect consumers and workers. Hundreds of thousands of people called on our state AGs to stand up to the Ellisons, who have engaged in a campaign of corruption and extortion to pave the way for this unlawful merger. We can no longer rely on the federal government to enforce the law and protect regular people. That much is clear. But the AGs’ capitulation marks a new low. It’s a sad day for all of us who have been opposing this merger because it will cut jobs and raise prices, all as it consolidates the media even more to enable authoritarians.

“Based on all reports, this weak deal contains nothing but unenforceable, empty Paramount promises. It abandons the thousands of creatives and workers who risked speaking out, and the tens of millions of consumers the attorneys general should be fighting for.

“Behavioral conditions do not work. They won’t save jobs, preserve choice, or prevent price hikes. As we learned from the failed and widely-panned Facebook Oversight Board, a fake bipartisan oversight committee won’t save CNN. We have all the evidence we need from the Ellisons’ destruction of CBS about what they do to warp journalism at Donald Trump’s request. This latest capitulation comes as the Trump administration barred CNN and other reporters who dare ask hard questions from the White House press pool.

“Consolidating the media in the hands of friendly oligarchs is right out of the authoritarian playbook. Americans across the political spectrum are fed up with corruption and consolidation, and billionaires calling all the shots while everyone else struggles. People won’t forget who stood up for them and who capitulated.

“What’s exceedingly clear is that our laws and our political system are not strong enough to resist the pressure and manipulation of corrupt billionaires. We need to strengthen democratic systems of government, including getting money out of politics, and pass laws that break up big media conglomerates. We need to ensure that a few billionaires can’t drown out the masses to dictate bad policy.”