Attorney General Bonta Secures Deal Halting Warner Bros./ Paramount Merger Until June 2027 or Court Ruling

OAKLAND — California Attorney General Rob Bonta today announced securing an agreement with Warner Bros. and Paramount that would keep the entertainment titans from merging until June 1, 2027, or until after a decision by the court on the states’ claims, whichever comes first. If the court finds in favor of the states, the merger would be blocked pending appeal. Last week, Attorney General Bonta led a coalition of 12 attorneys general in filing a lawsuit challenging the unlawful merger, and this week, he celebrated a critical win when he secured a temporary restraining order pausing the merger. The Warner Bros./ Paramount merger is expected to result in higher prices, lower content quality, and fewer movies and TV shows. The proposed $110 billion merger — the largest in Hollywood history — would combine two of Hollywood’s five major film distributors and two of the five major owners of basic cable channels, extinguishing competition between Paramount and Warner Bros., and inflicting substantial harm on movie theaters, basic cable distributors, and ultimately, audiences nationwide. 

“Our argument against this illegal merger is straightforward: When too few corporations have too much power in markets central to American life, it makes things more expensive, and it makes things worse,” said Attorney General Bonta. “Today’s agreement is great news for audiences, movie theaters, and the many people who write, build, and create the art, news, and entertainment so many of us enjoy. We are eager to continue to make our case in court and celebrate another tremendous win in our effort to ensure this unlawful merger never sees the light of day.”

As part of today’s deal, Warner Bros./Paramount agree not to merge until 5 days after a decision on the merits of the states’ challenge or until June 1, 2027, whichever comes earlier. If the court finds in favor of the states, the merger would be blocked pending appeal. If there is no merits determination by June 1, 2027, the states can file a motion for a preliminary injunction.

For more than a century, Warner Bros. and Paramount have stood astride the film and television industry as independent sources of creativity and competition. The lawsuit alleges that the merger violates Section 7 of the Clayton Act, which holds that mergers that may substantially lessen competition or tend to create a monopoly are illegal. The attorneys general allege that, if Warner Bros. and Paramount are allowed to merge, it would lessen competition in three markets: film distribution, anticipated blockbuster film distribution, and licensing cable TV channels.