California Attorney General Rob Bonta is facing calls for an investigation into whether political funding connected to Netflix co-founder Reed Hastings' family influenced the state's lawsuit to block Paramount's acquisition of Warner Bros. Discovery. Republican challenger Michael Gates and the California GOP have raised concerns about the timing and potential motivations behind the antitrust action.
Gates, the Republican nominee for attorney general, stated that the financial relationship warranted an investigation, alleging that Bonta's office is being used for political favors. "Rob Bonta has turned his taxpayer-funded office into a favor factory for his political bosses and donors," Gates said. "He's pursuing politically-motivated litigation against a competitor for a company that's bankrolled his PAC."
Campaign finance records indicate that Hastings' wife, Patty Quillin, contributed $1 million to Smart Justice California Action Fund on March 16, 2022. This independent committee, according to a 2022 report, was involved in supporting Bonta and other progressive prosecutors. Subsequently, Smart Justice contributed $150,000 on May 4, 2022, to a committee supporting Rob Bonta's attorney general campaign.
California Republican Party Chairwoman Corrin Rankin echoed these sentiments, suggesting the situation raises questions about Bonta's motives. "This smells like Sacramento at its worst," Rankin said. "Rob Bonta takes Netflix money, then turns around and uses his office to kneecap a Netflix rival. With federal investigations, arrests, and guilty pleas already piling up in California’s one-party Democrat rule, is this about consumer protection or another political favor?"
Bonta's press office rejected the allegations, stating that the lawsuit was a result of antitrust analysis based on facts and the law. The office pointed to a February announcement regarding an investigation into the potential purchase of Warner Bros. by either Netflix or Paramount. "Our office's decision to file a lawsuit is always based on the facts, the law, and the protection of Californians," a spokesperson said.
The complaint filed by Bonta alleged that the merger would grant the combined company approximately 27% of wide-release theatrical film distribution and basic-cable channel licensing. This action stands in contrast to the Justice Department, which concluded an eight-month investigation and determined the transaction was unlikely to harm competition, potentially creating a stronger streaming alternative to existing major players.
Britain's competition regulator has already cleared the acquisition. Bonta's state-led litigation remains the primary regulatory obstacle. Paramount has agreed not to close the deal until five days after a ruling on the merits, with a federal trial scheduled for March.