California Attorney General Rob Bonta accused Paramount Skydance of trying to “blackmail” his office on Tuesday by threatening to leave the state unless he agrees to hold settlement talks in the antitrust case against the company’s merger with Warner Bros. Discovery.
Paramount CEO David Ellison reportedly plans to take his business out of California as soon as Oct. 1 if Bonta refuses to engage in settlement talks to resolve the 12-state antitrust lawsuit.
In the past month, the Democratic attorney general has been resistant to the possibility of settling the case before heading to trial. After the latest reports of Paramount’s plan to relocate, it appears he still holds that position.
“In a span of weeks, Paramount agreed to halt the merger until a court decision or until June 2027, asked for a November trial, and is now back with another attempt to blackmail the state into letting an illegal deal through,” Bonta posted on X. “Paramount has lost the plot as it continues to lose in court. It didn’t work the first time — on the eve of our July lawsuit — and it won’t work this time.”
He is referencing last month’s initial reports about Paramount’s possible exit from California, which came just before Bonta filed the lawsuit alongside New York Attorney General Letitia James and 10 other attorneys general. The fact that all 12 plaintiffs are from blue states suggests the suit is politically motivated. Bonta denied that it was the case in his Monday op-ed for Deadline.
Warner Bros. and Paramount “would have you believe that this is purely politics,” Bonta wrote. “It’s not. If it was, we would have been thrown out of court the day we filed.”
Paramount has declined to comment on its possible relocation. The company is reportedly considering Georgia, Texas, and Tennessee as options. In a recent letter, Tennessee Deputy Gov. Stuart McWhorter urged Ellison to move Paramount there.
Notably, Oracle is planning to move its world headquarters from Austin to Nashville. The software company, which was co-founded by Larry Ellison, left Silicon Valley for Austin in 2020. Larry Ellison is David Ellison’s father.
In the meantime, Paramount and Warner Bros. are heading to trial for the antitrust case during two weeks in March 2027. Paramount previously agreed to delay its merger with Warner Bros. until June 1, 2027. Initially, Paramount was aiming to close the deal by the end of next month.
Paramount must pay its so-called ticking fee, starting Oct. 1, as part of the merger agreement. This means that the company has to pay Warner Bros. shareholders $7 million per day for every day after Sept. 30 that the $111 billion merger is not closed. By the trial’s end date in early March, Paramount will have accrued more than $1 billion in total ticking fees. Should the proposed acquisition fail to close due to the antitrust case, Paramount owes Warner Bros. a $7 billion termination fee.
ROB BONTA DENIES ANTITRUST LAWSUIT AGAINST PARAMOUNT-WARNER BROS. MERGER IS ABOUT POLITICS
At this time, Bonta is proceeding to trial. There is no indication he is entertaining any settlement talks with the two studios. Bonta is up for reelection this year.
“This illegal merger will result in higher costs, fewer options, and fewer people making movies,” he said. “My office remains committed to stopping illegal consolidation and protecting a vibrant California economy for businesses that play by the rules.”