California AG Demands Divestitures for Paramount Warner Bros Merger

Rob Bonta, the Attorney General of California, is expected to demand that Paramount divest several cable channels and maintain its movie studio as a separate entity from Warner Bros. as a condition for approving a $110 billion acquisition of Warner Bros. Discovery.

These potential requirements follow an antitrust lawsuit filed last month by California and 11 other states. The lawsuit alleges the merger would reduce competition in cable television and film distribution, which would result in lower wages for workers and higher prices for consumers.

Paramount CEO David Ellison has countered these claims by arguing the merger would actually increase production. He pledged that the combined studios would release 30 movies annually, though state officials have dismissed this commitment as unenforceable. Representatives from Paramount and the California Attorney General's office are scheduled to meet on Monday to discuss a potential settlement of the lawsuit.