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By McKinley Franklin Plus Icon
McKinley Franklin
August 1, 2026 4:46pm
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California Gov. Gavin Newsom Heather Diehl/Getty Images
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Governor Gavin Newsom is concerned about the antitrust lawsuit filed by 12 state attorneys general led by California against Paramount‘s $111 billion takeover of Warner Bros. Discovery, and what it will mean for the entertainment industry, according to The Wall Street Journal.
In a Friday report, sources told the WSJ that Newsom has said if the merger is blocked due to the lawsuit, state employment will suffer. The outlet also notes that “Newsom’s office has encouraged Attorney General Rob Bonta’s office, which has independent authority to file such suits, to find a resolution out of court.”
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Reps for Newsom and Bonta declined the WSJ‘s requests for comment; The Hollywood Reporter also reached out to California’s governor for comment.
On July 13, the states filed a lawsuit alleging that the merger would combine two of Hollywood’s top five studios, which would lead to higher prices, less movies in theaters and a decrease in the variety and quality of content. “There is no debate here: This merger will snuff out competition, drive up prices, diminish content quality, and produce fewer movies and shows each year,” said California Attorney General Rob Bonta at a press conference at the time.
The filing of the suit led to a temporary pause on the merger, ruled by U.S. District Judge Araceli Martínez-Olguín on July 20; that temporary restraining order was subsequently extended on July 23. One day later, Paramount agreed to hold off on the acquisition until the court makes a decision of whether or not the deal violates antitrust laws.
In a court document filed on July 24, Paramount said they will not consummate the acquisition until June 2027 or five days after the court issues a ruling on the case, whichever is earlier.
Alongside California, Arizona, Colorado, Connecticut, Massachusetts, Minnesota, Nevada, New Jersey, New Mexico, New York, Oregon and Washington are involved in the suit.
While organizations including Cinema United have shown support for the suit and actors Benedict Cumberbatch, Alan Cumming and Benedict Wong called on the U.K. to block the Paramount–Warner Bros. merger, Newsom is not the only democratic power player to reportedly push for a settlement.
On Monday, Ari Emanuel, WME executive chairman and CEO of TKO, wrote an op-ed for the WSJ in support of Paramount’s acquisition of Warner Bros.
“When government officials manipulate markets to reach political outcomes, antitrust stops protecting competition and starts threatening it,” Emanuel wrote. “The attorneys general should drop this case and get back to enforcing the laws as they are written. Let Hollywood creatives get back to trying to rip each other’s heads off at the box office, in streaming, online and everywhere else we compete. It’s what we’re best at.”
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