Rob Bonta, California's attorney general, has announced an investigation into the proposed $111bn merger between Paramount Skydance and Warner Bros Discovery, warning that the deal is 'not a done deal' and vowing a 'vigorous' review.
In a post on X, Bonta said: 'Paramount/Warner Bros is not a done deal. These two Hollywood titans have not cleared regulatory scrutiny — the California Department of Justice has an open investigation, and we intend to be vigorous in our review.' The merger, formally announced on Friday, requires approval from regulators in the US and Europe, including the US Justice Department's antitrust division.
The deal poses significant risks for California's economy, with Paramount anticipating $6bn in cost 'synergies' — typically meaning massive layoffs and reduced supplier terms. The Writers Guild of America, which represents thousands of television and film writers, has said the takeover would harm jobs, noting that Warner Bros cancelled $2bn in content after merging with Discovery in 2022, and that Paramount's recent merger with Skydance led to 1,000 layoffs.
The merger has also drawn sharp criticism from lawmakers. Senator Elizabeth Warren called it 'an antitrust disaster threatening higher prices and fewer choices for American families', and questioned what Netflix's CEO was told at the White House shortly before the company withdrew its rival bid. Actor Mark Ruffalo also raised concerns, prompting Bonta to confirm he is 'in conversation with my AG colleagues about Paramount/Warner Bros'.
Paramount CEO David Ellison welcomed the Warner Bros board's unanimous approval of the offer, which he said delivered 'superior value, certainty and speed to closing'. However, with state and federal scrutiny mounting, the deal's future remains uncertain.
