politics
California Attorney General Proposes Structural Remedies in 12-State Merger Lawsuit
California Attorney General Rob Bonta suggested possible concessions to settle a 12-state antitrust suit against the Paramount-Warner Bros. Discovery merger. Paramount said the proposals exceed the scope of the complaint.
Jul 16, 11:53 AM·1m read1 source
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California Attorney General Rob Bonta proposed structural remedies that could separate a news channel, streaming service, or studio from the $110 billion Paramount-Warner Bros. Discovery merger. Bonta made the comments Wednesday during a KQED radio interview. He said structural remedies would keep corporate entities separate and would be easier to enforce than behavioral remedies.
Twelve states filed the antitrust suit Monday seeking to block the merger. The complaint focuses on theatrical distribution and cable bundling. Bonta said he is concerned the deal would consolidate too much market power. He added that behavioral remedies have traditionally proven ineffective.
A Paramount spokesperson said Bonta’s comments go beyond the complaint. The spokesperson stated the merger combines complementary businesses and creates a stronger competitor in a streaming-driven market. The companies aim to close the transaction by September 30.
The earliest possible closing date is July 22. A federal court hearing on the states’ request for a temporary restraining order is scheduled for Friday before U.S. District Judge Araceli Martinez-Olguin.
