Variety: California Attorney General Urged by Dems to ‘Closely Scrutinize’ Paramount-W.B. Merger

Most of California’s Democratic congressional delegation sent a letter to Attorney General Rob Bonta on Thursday urging him to “closely scrutinize” the pending merger of Paramount and Warner Bros.

The letter, authored by Rep. Laura Friedman and co-signed by 33 of her Democratic colleagues, warns of the potential loss of Hollywood jobs and reduced choice for entertainment consumers. The letter also suggests that the Trump administration will greenlight the deal due to its close relationship with David and Larry Ellison, warning of “unprecedented politicization of antitrust enforcement.”

“Given that we cannot have confidence that the Trump Administration review of the merger will be conducted according to the law, and with the best interests of American workers and consumers in mind, it is even more vital that you conduct a thorough, independent review,” the letter states.

When the merger was announced in February, following Netflix’s withdrawal from the bidding war for Warner Bros., Bonta warned that it was “not a done deal.”

“These two Hollywood titans have not cleared regulatory scrutiny — the California Department of Justice has an open investigation, and we intend to be vigorous in our review,” Bonta said at the time.

Even if the U.S. Department of Justice opts not to challenge the merger, state attorneys general have shown a willingness to go it alone. Most recently, a coalition of states continued to pursue an antitrust case against Ticketmaster and Live Nation even after the DOJ reached a settlement, ultimately winning a jury verdict against the companies.

Many in the Democratic Party have expressed skepticism about the Paramount-Warner Bros. merger without quite expressing firm opposition. At a field hearing about the state of Hollywood in March, Sen. Adam Schiff called for scrutiny of the deal, while Rep. Lou Correa suggested it could be approved with certain conditions to protect workers.

The letter to Bonta similarly expresses “concern” about the impact on workers and consumers.

“We therefore respectfully urge you to closely analyze the potential effects of this merger and, if you determine that this merger would have anticompetitive effects, use your best judgement to pursue the
appropriate course of action,” the letter states.