CALIFORNIA – The governor also said he was taking seriously a warning that Hollywood studios could leave California if the dispute is not resolved by October.
Newsom said he was concerned about the potential impact on jobs and California’s reputation as a production hub.
California Governor Gavin Newsom has backed settlement talks in the antitrust case over the proposed Paramount-Warner Bros. merger. He said the dispute should ideally be resolved outside court.
Speaking in San Francisco on Friday, Newsom referred to recent comments by California Attorney General Rob Bonta. Bonta said he preferred to settle the dispute in the boardroom rather than the courtroom.
“I think there’s some universal sentiment there,” Newsom said. He added that the parties still need to decide whether a settlement is possible and what it would involve.
Newsom says merger talks are underway
Newsom said discussions about a possible resolution were already taking place.
He said several meetings were being held and that there was considerable discussion about what a potential agreement could look like.
However, California is part of a coalition of 12 states challenging the merger. Newsom noted that Bonta represents California while also working with the wider coalition, meaning any potential settlement would need to take the other states into account.
The states’ antitrust lawsuit seeks to block the proposed transaction over concerns about its potential impact on competition.
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Newsom takes studio exit warning seriously
Newsom’s comments came after Paramount Skydance CEO David Ellison warned that one or two of Hollywood’s remaining historic studios could leave California if the antitrust dispute is not resolved by October.
The governor said he was taking the warning seriously and hoped such a move would not happen.
Newsom said he believed leaving California would not be in the company’s long-term interests, but acknowledged the potential consequences for the state.
“I take it seriously,” he said.
California concerned about Hollywood jobs
The governor said he had been speaking with people on different sides of the dispute because of its potential importance to California.
“I’m very mindful of what this means to the state,” Newsom said, adding that he was concerned about California’s reputation.
Newsom had previously faced reports that he was concerned about the states’ antitrust lawsuit because of its potential impact on employment in California. He had reportedly encouraged Bonta to seek an out-of-court solution but had not publicly confirmed his position at the time.
His latest comments make his support for settlement talks more explicit.
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Other California leaders support negotiations
Newsom’s position puts him alongside other California political figures who have called for negotiations over the merger.
Xavier Becerra, the Democratic candidate for California governor in this year’s election, has also supported efforts to reach a settlement.
Los Angeles Mayor Karen Bass similarly called on the parties to come together and work urgently towards common ground.
The Paramount-Warner Bros. dispute therefore remains subject to both the ongoing antitrust proceedings and efforts to determine whether the proposed merger can be resolved through negotiations.
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Key points:
- California Governor Gavin Newsom has backed efforts to settle the antitrust case challenging the Paramount-Warner Bros. merger.
- Newsom said California Attorney General Rob Bonta prefers resolving the dispute in the boardroom rather than in court.
- Twelve states, including California, are challenging the proposed merger on antitrust grounds.
- Newsom said talks between the parties are already taking place.
