(Updated with California Attorney General statement) After weeks of speculation about Gavin Newsom‘s true position on Paramount‘s $111 billion acquisition of Warner Bros Discovery and the antitrust suit filed a coalition of state attorneys general, the outgoing governor of California finally weighed in publicly today.
His comments come as it appears that Paramount representatives and state attorneys general offices are said to be meeting face to face on Monday, Deadline has confirmed. However, the depth and scope of the August 24 meeting is unclear, sources tell us. “This is mandated under the mediation procedure,” an insider told Deadline on Friday.
Earlier this week, a status conference hearing before Judge Araceli Martinez-Olguin determined future dates in the contentious proceedings and stipulated that the parties engage in mediation before a magistrate judge — as is common in the federal system for cases like this.
California Attorney General Rob Bonta certainly isn’t publicly treating the talks of talks as any big deal, at least not right now.
“As I’ve said before, generally for all of my cases, I prefer to resolve disputes in the boardroom, not the courtroom,” the re-election seeking AG said late Friday after news of August 24 settlement talks were revealed. “As I’ve also said, if the opposing party in litigation wants to meet in good faith to make a sincere effort to resolve the case, we’ll meet. And as I have further said, any potential discussions about the Paramount-Warner Brothers merger will be unproductive absent robust structural remedies on the table that address our concerns.”
Sounding a lot like the antitrust complaint of last month he helped write, as well as two reports for the LA County Board of Supervisors from the regions’ Department of Economic Opportunity looking at the fallout from the merger, Bonta added: “As it stands today, the proposed Warner Bros./Paramount merger will mean higher costs, less competition, lower wages, job cuts, and fewer movies and TV shows. This merger violates long-standing federal antitrust law, and we are committed to enforcing the law.”
RELATED: Paramount CEO David Ellison Complains About “Needless Costs” Of State AGs’ Antitrust Suit As Mexico Approves Merger
As leaks have poured out of the Melrose lot of late that CEO David Ellison is considering decamping his company to a red state if the suit isn’t settled, potential 2028 POTUS contender Newsom said earlier Friday he takes the Golden State exit threat “seriously.”
“We’re hoping that doesn’t happen,” Newsom said Friday of Paramount potentially relocating to Tennessee, Texas or Georgia. “And I’m of the belief they don’t want that to happen. It’s not, I don’t think, in the company’s long-term interest, but I take it seriously.
“I’m concerned about the state, our reputation,” the two-term Democrat added at an event today.
California Gov. Gavin Newsom
Getty Images
Reports have emerged during the past month that Newsom would like to see a settlement deal struck between the AGs and defendants Paramount and Warner Bros rather than the whole affair heading to trial. The governor’s office has neither confirmed nor denied Newsom’s POV, but until today he was one of the few voices silent on the merger and the lawsuits.
With Paramount attempting to achieve a court order for a $1.88 billion bond and a looming $7 million-a-day ticking-fee deadline, a trial has been set for March 2 in federal court in Oakland.
As well as addressing Paramount’s purported temper tantrum about an exodus from California, Newsom today also offered some guidance on his thoughts about the lawsuit fronted in some ways by California Attorney General Rob Bonta.
RELATED: California AG Rob Bonta Open To Structural Remedies In Paramount-WBD Suit But Calls 30 Movies A Year An “Old, Stale Promise”
Echoing Bonta’s words that the whole matter could be settled in the boardroom not the courtroom, the governor added: “I think there’s some universal settlement there, if that’s possible. The question is [whether] that’s possible and what’s the best deal … that has to be worked through.”
To that, the media-savvy Newsom threw out a bit of a gold nugget — or firecracker, depending on your perspective — to all concerned.
“I know there are many meetings that are going on, and there’s a lot of conversation,” Newsom said, seeming to indicate the semi-secret settlement talks between ParaBros and the AGs.
RELATED: California Democratic Gubernatorial Nominee Xavier Becerra Says He Prefers Settlement Of Paramount-WBD Antitrust Lawsuit: “Conference Room, Not Courtroom”
While everyone under the California sun, including Democratic gubernatorial candidate Xavier Becerra, incumbent L.A. Mayor Karen Bass, IATSE, the DGA and many more have joined the Paramount chorus advocating for settlement talks, Bonta has been keeping his powder dry and clearly weighing his options. Blasting Paramount’s threats to leave the state as “blackmail,” Bonta has appeared set on taking the whole thing to trial next year.
Now, with Newsom’s claims of talks happening in “real time” — though the governor was vague as to what that actually means — tactics and strategy on both side seem to be up in the air, both politically and legally.
RELATED: Could Cable TV, That Vestige Of Bygone Media Glory, Undo The Paramount-WBD Merger?
Paramount had no comment on what the governor said, though execs over there are more than likely doing a happy dance right now.
The iconic gates of Paramount Pictures
Mark Davis/Getty Images
With all of that and all the twists and turns this battle of corporate and political (yes, we see you CNN) will, at this point on a Friday, all we can say is stay tuned.
Erik Pedersen contributed to this report.
