After this week’s double punch of stories that, first, the Warner Bros. Discovery board had determined Paramount’s newest bid was the “superior proposal” and that Netflix’s response was to not elevate its personal supply however moderately to again out totally, it’d be tempting to imagine Hollywood’s largest deal in years is signed, sealed, and delivered. However… not so quick, says California Legal professional Common Rob Bonta.
“Paramount/Warner Bros. is just not a performed deal,” Bonta wrote on X after the information broke. “These two Hollywood titans haven’t cleared regulatory scrutiny—the California Division of Justice has an open investigation, and we intend to be vigorous in our overview.”
As Deadline reminds us, Bonta’s workplace opened an inquiry into the Warner Bros. acquisition—no matter which suitor, Netflix or Paramount, ended up victorious—simply final week. On February 20, the AG defined, “The movie and leisure trade not solely has historic significance to our state, it is also a important sector that buoys the state’s financial system of California and touches the lives of People each day. The proposed Warner Brothers transactions should obtain a full and sturdy overview, and California is taking a really shut look.”
Whereas possession of Warner Bros. is technically a enterprise deal, political fervor has additionally constructed up across the challenge, seemingly an unavoidable circumstance in America right this moment. And that’s not going to vary it doesn’t matter what occurs subsequent. As CNN—a Warner Bros.-owned outlet that can discover itself beneath the identical possession because the just lately overhauled CBS, if Paramount finalizes its buy—writes, “[President Donald] Trump was and stays a significant X issue within the transaction. Though presidents usually keep out of antitrust investigations, Trump strongly steered that he favored a Paramount deal due to Ellison’s politics.”
To date, neither Trump nor California Governor Gavin Newsom, a famous Trump opponent, has spoken out on this newest improvement within the Warner Bros. sale. No matter occurs, it seems like Warner Bros. Discovery CEO David Zaslav isn’t too labored up in regards to the final result.
In line with Enterprise Insider, he did admit to WBD staffers that the pace of the turnaround was a shock even to him. However Zaslav emphasised they’d be OK even when the regulatory approval, estimated to take six to 12 months, doesn’t come by, due to the big “breakup charge” Paramount should pay if that occurs.
“The deal might not shut,” Enterprise Insider quoted Zaslav as saying. “If it doesn’t shut, we get $7 billion, and we get again to work.”
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