Newsom backs settlement talks over Paramount Warner Bros merger suit

MUMBAI: Hollywood’s biggest merger battle may be heading for a less dramatic plot twist. California Governor Gavin Newsom has backed efforts to settle the antitrust lawsuit challenging the proposed Paramount-Warner Bros merger, saying he would prefer the dispute to be resolved in the boardroom rather than the courtroom.

Speaking at a press appearance in San Francisco on Friday, Newsom pointed to comments made earlier this week by California Attorney General Rob Bonta, who had said he would prefer the matter to be settled outside court.

“I was appreciative, I think this week, earlier this week, you heard the attorney general himself say he’d prefer this settled in the boardroom, not the courtroom,” Newsom said, adding that the key question was whether a workable agreement could be reached and what the final terms might look like.

The governor indicated that discussions were already under way. He said he understood that meetings and conversations were taking place around a possible settlement, while stressing that Bonta was representing not just California but also part of a coalition of 12 states challenging the transaction.

Newsom’s comments mark a clearer public position after a July 31 report in The Wall Street Journal said he was concerned about the states’ antitrust case and its potential impact on employment in California. At the time, Newsom did not publicly confirm his position.

The governor also addressed comments from Paramount Skydance CEO David Ellison, who has warned that the company could move one or two of Hollywood’s remaining historic studios out of California if the antitrust dispute is not resolved by October.

Newsom said he was taking the threat seriously, while expressing hope that such a move would not happen. He also suggested that relocating the studios would not necessarily be in Paramount’s long-term interest.

The stakes, he said, extend beyond the merger itself. Newsom said he was speaking with people on all sides of the debate because of what the outcome could mean for California’s economy, employment and reputation as a centre of the entertainment industry.

His support for settlement discussions puts him alongside Xavier Becerra, the Democratic candidate for California governor in this year’s election, as well as Los Angeles Mayor Karen Bass. Bass said on Thursday that the parties should come together and work urgently towards common ground.

For now, the merger remains tied up in the 12-state antitrust challenge, but Newsom’s comments add political weight to the push for a negotiated solution potentially shifting the next act of the Paramount-Warner Bros saga from the courtroom to the negotiating table.