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.”
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.
