The California Attorney General Rob Bonta’s decision to reach a settlement with Paramount, permitting its acquisition of Warner Bros. Discovery with only minor conditions, was significantly influenced by political pressures from Governor Gavin Newsom, Los Angeles Mayor Karen Bass, and likely future governor Xavier Becerra.
This pressure had been mounting for several weeks as Paramount’s CEO David Ellison made it clear that the company was serious about relocating from Los Angeles to either Nashville, Tennessee, or Austin, Texas. In a recent meeting with Bonta, he conveyed this intent directly, according to those acquainted with the situation.
Ellison and Paramount’s chief legal officer, Makan Delrahim, had various strategies up their sleeves that they employed in the weeks leading to the settlement. They made appeals to centrist Democrats about potential job losses, insisted that Bonta and eleven other state attorneys general supporting his case post a $1.88 billion bond backed by the White House, and even urged GOP state attorneys general to petition the Supreme Court to annul the lawsuit. The Supreme Court’s ruling that prosecutors needed to respond to the complaint further tilted the scales in their favor. Ellison assured that even with minimal concessions, he’d let Bonta take credit for any deal announcement.
However, the political dynamics at play were crucial. Tensions rose within the Democratic Party of California; moderate members became increasingly concerned about Ellison leaving and taking approximately 50,000 jobs, along with the symbolic Paramount lot, effectively a hallmark of Hollywood.
“These politicians – Newsom, Bass, and Becerra – they’re all eyeing future elections, with Newsom even considering a presidential run. Were they really going to jeopardize their careers over a lawsuit that lacks substantial antitrust grounds?” said someone familiar with negotiations. “Not likely.”
Yet the situation was fraught with uncertainty right up until Sunday night. On the day of the anticipated settlement, insiders at Paramount were feeling quite pessimistic. While progress was made with Bonta—he agreed to forgo significant structural reforms in return for job assurances and commitments to film in California—other state AGs began to object.
Connecticut AG William Tong and New York AG Tish James, both progressives, insisted on further concessions, including the divestment of some cable channels. They were responding to pressure from their political allies, including unions and progressive groups who opposed the merger due to Larry Ellison’s ties to Oracle and his support for Trump.
The Ellison family’s influence was already ruffling feathers among progressive media interests, particularly at CBS, as they sought to reduce perceived left-wing bias in programming. They likely aimed for similar changes at CNN, which progressive commentators often criticize.
Conversely, actor Mark Ruffalo was a public opponent of the merger, advocating for the case to go to trial. His misstep, as some close to the situation noted, was criticizing the Ellisons for Oracle’s connections to Israel, implying that the merger could lead to serious ethical issues.
Paramount publicly denounced Ruffalo’s remarks, which also attracted backlash from numerous Jewish organizations. Hollywood figures, particularly many pro-Israel individuals, took note, urging Newsom, Bass, and Becerra to advocate for the merger’s approval.
As rumblings grew that Bonta could halt the acquisition of two companies that badly needed to merge for their survival—backed by broad global support—Hollywood executives voiced their concerns to state leaders.
“Bonta became more conciliatory over the weekend, especially knowing that Larry had already left California,” remarked a source familiar with discussions, referencing Oracle’s move to Austin.
“David was genuinely considering a similar move. But it’s hard to say how much Ruffalo’s comments hurt Bonta’s position. It made it seem that the person who inspired his legal action was creating discord among his fellow Democrats.”
A private meeting with all twelve state AGs convened late Sunday afternoon. Bonta actively pressed for the deal, and ultimately, James and Tong accepted terms that included job guarantees and minor regulations to maintain the independence of CNN and CBS, without any major structural alterations. Tensions grew in the Ellison camp as they awaited news, fearing they might need to pivot back to their original case with a challenging deadline approaching.
“They were anxious because, honestly, it felt uncertain right up to Sunday,” said an individual familiar with the negotiations.
Then came the word that the AG was on board with a settlement in principle, with an official signing planned for that Monday.
