The Great Merger Grind: How California’s AG Is Making Paramount Squirm

California Attorney General Rob Bonta has been making waves in the entertainment industry, and for good reason. His antitrust lawsuit against the proposed merger between Paramount and Warner Bros. Discovery has been a thorn in the side of would-be mogul David Ellison.

Bonta’s recent interview with The Hollywood Reporter shed light on his strategy and revealed just how desperate Ellison is getting. With each passing week, Bonta gains leverage as the ticking clock gets closer to a billion dollars in penalties for Paramount if they can’t divest Warner Bros. assets by March.

Ellison has been trying to put pressure on Bonta through a media blitz, threats to leave California, and motions to force taxpayers to pay the ticking-clock fees. However, these efforts have fallen flat so far. It’s not just because of the lawsuit itself; it’s also because of the very public nature of Ellison’s attempts to strong-arm Bonta.

In an interview with The Hollywood Reporter, Bonta described Ellison’s actions as “desperate” and “grasping at straws.” This characterization suggests that Paramount is indeed flustered by the lawsuit. However, it’s possible they’re trying to create a smokescreen to distract from their own failures in court.

The recent shift in position by some Hollywood guilds may seem like a blow to Bonta’s leverage. The DGA and IATSE have expressed interest in resolving disputes amicably and are now offering support for talks – but only if Paramount is willing to put forward real, structural remedies. According to Bonta, these groups have always been interested in finding a peaceful resolution.

The Attorney General’s words should be music to the ears of anyone who cares about accountability in Hollywood: “Coming to the table is always on the table. But Paramount-Warner Bros breaking the law and us allowing it to happen – that’s never OK.”

This merger has been a long time coming, but it’s also been unraveling for some time now. As more stakeholders come out in favor of a settlement, it’s clear that Bonta’s strategy is working.

If Paramount wants to get out of this mess with their reputation intact, they’ll have to start playing by the rules – not just any rules, but the rules set forth by the antitrust lawsuit itself. No more Hail Marys, no more desperate attempts to strong-arm their way out of trouble.

Ultimately, it’s up to Paramount to decide how they want to proceed. However, one thing is clear: Rob Bonta and California are not going anywhere, and David Ellison had better start getting used to that fact. As the clock ticks closer to a billion dollars in penalties, it’s anyone’s guess what will happen next. Will Paramount finally come clean and propose some real remedies? Or will they continue to try and strong-arm their way out of trouble?

The people of California are watching – and they’re not going to let Hollywood get away with anything less than transparency and accountability.