California Attorney General Rob Bonta said Thursday it would take “robust” concessions from Paramount boss David Ellison to settle an antitrust lawsuit brought by 12 lefty state attorneys general against his acquisition of Warner Bros. Discovery.
Bonta told CNBC’s David Faber that he would need “really robust structural remedies” from Paramount to address the anticompetitive risks mentioned in the lawsuit – specifically that the new firm would control one-third of films and nearly a third of cable TV programming.
“[Paramount] wanted to talk about everything except for what this case is about. They want to talk about the streaming market, which we don’t allege in our complaint. They want to talk about CNN, which is not a focus of our complaint. They want to talk about the foreign regulators,” Bonta said.
He said it’s no secret that Ellison is eager to reach a settlement – since a lengthy court battle could force Paramount to shell out an extra $7 million per day until the deal is closed – but that such an agreement would need to include assurances on those film and TV concerns.
“I will say that coming to the table has always been on the table. And if Ellison and Paramount want to come to the table in good faith and talk, we want to talk, too. We’re happy to have that conversation,” Bonta said.
“We do prefer to resolve cases in the boardroom instead of the courtroom, but for now we’re bringing our case, and, you know, I hope they can focus on the actual allegations we make in our complaint.”
Paramount did not immediately respond to The Post’s request for comment.
The $110 billion deal would combine HBO Max, Paramount+, HBO, CBS, CNN and thousands of movie titles under one company led by Ellison, the son of Oracle billionaire and close Trump ally Larry Ellison.
In a July 13 complaint, a group of state attorneys general – led by Bonta and including New York’s Letitia James – alleged the new conglomerate will control 30% of movies that have earned $100 million-plus at the box office.
“Movie theatres rely on competition between Paramount and Warner Bros,” the complaint said. “Through this competition, theatres incentivize creativity and quality, and they secure competitive prices and terms for themselves and for audiences.”
The deal would lead to higher prices and less content, ultimately hurting consumers and film workers, the lawsuit claimed.
But as of Tuesday, all three of the nation’s largest movie theater operators – AMC, Regal and Cinemark, which combined account for 60% of movie ticket sales nationwide – have thrown their support behind the Paramount deal.
The theater giants flipped their stance after several concessions from Ellison, including a pledge to produce 30 movies theatrically each year and keep them in theaters exclusively for 45 days after release. He has vowed to stick to these commitments for at least three years.
When asked about the surprise move from the theater chains, Bonta noted that the companies “do not want the merger approved as is” and are still pushing for “a whole bunch of protections, and that’s not an inappropriate thing to request.”
As for arguments that cable TV viewership has shrunk due to the rise of streaming, potentially reducing the anticompetitive risks mentioned in the lawsuit, Bonta replied: “Whether the market is shrinking or growing is really irrelevant.”
“We are the ones who’ve looked at this from a straight-up law and facts and perspective in the American economy under American law under Clayton Act Section 7,” Bonta added. “And it’s just a straight-up, meat-and-potatoes, black-and-white, bread-and-butter antitrust case.”
Paramount has repeatedly defended the merger, noting it has been approved by the US Department of Justice, as well as regulators in the EU, UK, Australia and China.
During Paramount’s earnings call in August, Ellison said he is “confident” the deal will close.
Earlier this month, a judge set a March 2027 trial data for the lawsuit – a much later date than Paramount had been hoping for.
If Ellison isn’t able to reach a settlement with Bonta by Oct. 1, Paramount will be forced to cough up a painful “ticking fee” of $7 million per day until the merger is completed.
The billionaire CEO has been seeking leverage in his battle with Bonta and New York AG Letitia James, reportedly considering taking the Hollywood studios out of California and moving CBS News headquarters out of the Big Apple.
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