Attorney General Rob Bonta defends settlement with Paramount as judge delays merger | CA Politics 360
A federal judge has delayed approval of the settlement in the Paramount-Warner merger case, following concerns raised by critics and New Jersey Sen. Cory Booker about its potential impact on competition, jobs, and media independence.
The settlement, reached between Paramount, Warner Bros., and a coalition of 12 states led by California, attempted to solve an antitrust lawsuit filed by those states earlier this year. Critics of the new settlement argue the agreement gives Paramount too much power, potentially reducing media competition, leading to fewer movies, and causing job losses.
California Attorney General Rob Bonta, who helped lead the negotiations, talked at length about the situation in an interview on California Politics 360. He acknowledged the merger could have impacts on costs for people across the country.
“When big corporations merge, like Paramount and Warner Brothers, there is a tendency, a potential for there to be higher prices, for there to be job losses, for there to be less choice, quality competition,” he said.
Bonta said the settlement he helped reach includes provisions to address antitrust concerns, such as commitments to increase domestic film production, which could create jobs in California and across the United States.
“Right now, about 5% of Paramount-Warner Brothers theatrical films are made in the United States. With this settlement, up to 40% of those films can be made here,” Bonta said, adding that the agreement includes a $1.5 billion minimum commitment to domestic production.
The settlement also includes measures to ensure editorial independence for CBS News and CNN, which would be under the same corporate umbrella if the merger proceeds. “There is an editorial independence board that will set over CBS News and CNN,” Bonta said. “It will be made up of experienced journalists, hopefully trusted journalists, who will prepare a set of standards for journalistic integrity and non-biased, fact-based, objective reporting.”
Sen. Cory Booker, the lead Democrat on a U.S. Senate committee focused on antitrust issues, has urged the court to appoint an independent economic expert to analyze the settlement and ensure it fully addresses the concerns.
Bonta dismissed the notion that Sen. Booker’s involvement undermines the settlement, calling his input “very helpful” and “very productive.” He noted that Booker’s questions about the markets affected by the merger and the proposed solutions in the settlement would help clarify the case for the public.
Bonta said he expected the judge to move quickly, with responses from third parties already being requested by next week. While Bonta expressed confidence that the settlement would ultimately be approved, he acknowledged the importance of transparency and public input in the process.
“This is not a blessing of this merger or any merger,” Bonta said, emphasizing his broader concerns about market consolidation. “They tend to decrease competition, make people pay more for less, put at risk jobs, and raise prices.”
Bonta also highlighted California’s active role in antitrust enforcement, citing recent cases against Ticketmaster-Live Nation, Nexstar-Tegna, Amazon, and the blocked Albertsons-Kroger merger. “We will continue to be adamant, vigilant, relentless when it comes to inspecting proposed mergers and other potential antitrust violations,” he said.
The settlement, if approved, would remain in effect until 2031, with provisions aimed at maintaining competition in the markets for theatrical film distribution and cable channel licensing. However, Bonta stressed that the ultimate goal is to ensure these markets remain healthy and competitive even after the settlement expires.
KCRA 3 Political Director Ashley Zavala reports in-depth coverage of top California politics and policy issues. She is also the host of “California Politics 360.” Get informed each Sunday at 8:30 a.m. on KCRA 3.