California's attorney general suddenly canceled a meeting scheduled for today about a proposed merger between Hollywood heavyweights. The $111 billion consolidation would join Paramount Skydance with Warner Bros. Discovery. Now, many people in the film industry want to block this deal, but now some are calling for a settlement.
Actors, writers and filmmakers are trying to block the proposed megamerger, and they believe that it would be disastrous for the film industry, could mean thousands of lost jobs, fewer films are made, higher prices for moviegoers. And the deal faces an antitrust lawsuit filed by attorneys general from 12 states, including California, as well as litigation by the Writers Guild of America, the WGA.
David Ellison wrote a New York Times op-ed saying he loves movies and he's committed to putting out 30 films a year with the combined studios of Paramount and Warner Bros. But Ellison is apparently so put off by questions about his politics and these legal challenges that there's speculation he may move Paramount out of California unless the litigation is resolved by October 1. That's when Paramount has to begin paying Warner Bros. shareholders $7 million a day.
During a recent Politico summit in Sacramento, Paramount's chief legal officer, Makan Delrahim, addressed the rumors that Ellison may move the studio out of Los Angeles. Delrahim stated: 'His, I think, intent is to be committed to be California. There's a point at which where you have a duty, a fiduciary duty to your shareholders. You have to take a look at the business environment and look to see what's best for not only the community, the business, and ultimately, you know, go to the place where you're wanted.'
California state Attorney General Rob Bonta says it's an attempt to blackmail regulators. During an interview with The Ankler, Bonta said Paramount seems to be grasping at straws. Bonta remarked: 'You know, literally, I can imagine them in some war room being like, guys, we're getting our butts kicked. What can we do? How can we impose some pressure? Hey, maybe we should threaten to leave California. How about that? It really just looks desperate.'
Bonta says he's open to a settlement if Paramount negotiates in good faith. A judge in Oakland has already set a trial date for March. The meeting scheduled for today between attorneys general and Paramount was intended to discuss a possible settlement, but Bonta called it off. In a statement, he said Paramount had leaked and misrepresented the alleged substance of the preliminary discussions. He said he'd be happy to meet again as soon as Paramount stops playing games.
California Governor Gavin Newsom says he'd like both sides to settle out of court with certain caveats, and so does Los Angeles Mayor Karen Bass. Both of them say they worry about Paramount leaving Los Angeles. For decades, it was a film and TV capital, but it's been losing production to other cities, other states, other countries. Paramount Pictures is 114 years old, the very last of the big legacy studios left standing in the actual place called Hollywood.
