Rob Bonta Dismisses David Ellison's Pressure Tactics as Paramount-Warner Bros. Merger Faces Courtroom Challenges

California Attorney General Rob Bonta has dismissed the recent pressure tactics employed by David Ellison as the Paramount-Warner Bros. Discovery merger faces a significant antitrust lawsuit. While David Ellison has attempted to use a media blitz and a threat to leave California to force a settlement, Bonta maintains that the states' legal position remains strong and that the pressure is largely self-imposed by Paramount. Bonta emphasized that the lawsuit, led by 12 attorneys general, is a matter of national economic jurisdiction and that David Ellison cannot escape accountability regardless of where the company operates. He noted that while some Hollywood guilds have expressed a desire for a settlement, the core issue remains the legal requirements of the complaint. Bonta prefers structural remedies, such as divesting specific cable channels, over behavioral remedies like a commitment to produce a number of movies. Prediction markets currently show a 74% likelihood of the merger succeeding by July 2027, despite the legal hurdles and the ticking-clock fees Paramount will owe if the deal fails to close on time.

Sources

• Variety
  Will David Ellison Say Goodbye to Hollywood? Some See Paramount’s Potential Exit From California as ‘Strategically Unwise’ — but Others Say It’s Just Smart Business
• Axios
  Paramount wants states, WGA to post $1.9B bond to cover merger pause losses
• The Hollywood Reporter
  California AG Rob Bonta Says David Ellison Is “Desperate” and “Grasping at Straws”
• The New York Times
  Paramount Asks States to Shoulder Costs of Delaying Warner Bros. Deal
• CNBC
  Prediction market traders see roughly 1-in-4 odds Paramount’s bid to buy Warner Bros. Discovery fails