California Gov. Gavin Newsom’s office has urged state Attorney General Rob Bonta to settle California’s lawsuit challenging Paramount’s proposed $81 billion acquisition of Warner Bros. Discovery, citing risks to Hollywood jobs if the deal is blocked.
Newsom has privately told people involved in the matter that preventing the merger could damage employment in the state’s entertainment industry. His office is pressing Bonta to seek an out-of-court resolution rather than continue litigation that could delay or derail the transaction.
Bonta retains independent authority to decide whether to settle, pursue the case, or take other action. The attorney general’s office has not publicly indicated whether it will follow the governor’s preference.
The lawsuit targets the Paramount–Warner Bros. Discovery deal on antitrust or related grounds under California law. Newsom’s intervention reflects concern that prolonged legal uncertainty or a successful challenge could harm the state’s film and television workforce, a key economic sector.