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California to decide soon whether to seek to block Paramount deal<body><p>STORY: :: California’s AG says he may soon decide whether to block Paramount acquiring Warner Bros </p><p>:: Oakland, California / June 4, 2026</p><p>:: Theater owners, actors and others in the industry fear the deal would decrease competition and lower wages</p><p>:: Rob Bonta, California Attorney General</p><p>"It was a mega merger that was going to harm workers and reduce prices, choice, quality. And we think we have a central role in being able to protect jobs in Hollywood with respect to the Paramount Warner Brothers proposed merger. // You don't get a pass on violating antitrust law that hurts consumers and raises prices and hurts workers and reduces choice, competition and equality. You don't get a pass, ever. So, we will find a way, either we'll go back and ask for more money, we'll all pitch in enough resources, we'll hire outside counsel, whatever it takes. And I think the people of our states and the people of this country want that, and I know they deserve that. // We will have the resources if we decide that we're going to sue Paramount-Warner Bros. We are prepared to go either course: to not act if that's what we determine, or to go all in if that's what we determine. So, the full range of options are on the table and available and are fully resourced, no matter what we decide. // And there's not a lot of time left before we will need to act.”</p><p>Bonta's office has been reviewing the deal for potential violations of U.S. antitrust law, as movie theater owners, Hollywood actors and others have expressed concerns that it would decrease competition across the industry, leading to lower wages, higher prices and fewer options for consumers and content buyers.</p><p>Antitrust authorities in Europe are set to decide by early July whether to clear the deal, while the U.S. Department of Justice is likely to reach a decision soon, according to a source familiar with the matter. The deal could close once it clears those reviews, putting time pressure on Bonta's office, which is seen as the most likely enforcement agency to challenge the deal.</p><p>The combination of two major U.S. film studios has elicited angst in Hollywood over the potential for fewer productions. Bonta said his office has heard from many workers in the industry and that their concerns have raised "even more red flags."</p><p>The job of antitrust enforcers challenge mergers that would significantly harm competition, including competition among employers for specialized labor.</p><p>Paramount lawyers and executives have said the company is preparing to create more, not less, content after the acquisition. Paramount CEO David Ellison has vowed that the combined company will release 30 movies per year in theaters and that both studios will continue to operate separately.</p><p>California's Department of Justice has the largest antitrust division in the country, with just under 50 people. And the state is adding eight more attorneys this year along with eight support staff, Bonta said. California Governor Gavin Newsom has proposed adding $14.3 million to Bonta's budget for antitrust work.</p><p>A number of other states are talking to California about a joint challenge to the deal, two people familiar with the matter said.</p><p>However, there was no indication that the states have come to an agreement on their approach. The potential costs involved if California hires an outside lawyer could be a factor for states, the sources said.</p></body>
