Critics say California got too little in deal to let Paramount buy Warner Bros

On September 21, 2023, critics quickly condemned a California-led agreement that allowed Paramount and Skydance to acquire Warner Bros Discovery for $110 billion. Opponents argued the deal would harm competition in Hollywood, fail to protect jobs, and lack substantial concessions from the media conglomerate. California Attorney General Rob Bonta and Governor Gavin Newsom faced accusations of bowing to wealthy interests, particularly Paramount CEO David Ellison, after the company threatened to leave the state if the lawsuit was not dropped.

Alvaro Bedoya, a former FTC member and AELP adviser, stated that billionaires are "bribing, censoring, and bullying" their way to the top. Layoffs were expected, with jobs being lost from Los Angeles to Atlanta, and cable bills and movie tickets becoming even more expensive. The settlement's negative impact was felt beyond Hollywood, reflecting a growing divide in the Democratic Party between moderates and progressives.

US Senator Elizabeth Warren criticized the deal, calling it a "clear candidate for antitrust scrutiny in a future pro-competition administration." Senator Warren stated that the merger "leaves fewer studios competing for scripts and talent, gives one company greater power to dictate terms to distributors, and reduces streaming choices." Consumers would face higher prices, while writers and other creative workers would have fewer employers bidding for their work.

Bonta's attempt to block the deal faced opposition from Iowa and Montana, who requested the US Supreme Court to intervene to protect the deal. Cinema United, a trade organization representing theater owners, had urged Bonta to negotiate a settlement with Paramount to avoid further uncertainty and disruption in the industry. Cinemark, AMC, and Regal were part of this group, which represented 30,000 US movie screens.