Newsom Denies Pressuring California AG on Paramount Settlement Amid Liberal Backlash

California Governor Gavin Newsom on Wednesday denied allegations that he pressured Attorney General Rob Bonta to settle an antitrust lawsuit concerning the Paramount-Skydance merger with Warner Bros. Discovery. The lawsuit, initially led by Bonta and a group of state attorneys general, challenged the $111 billion deal that was expected to finalize in the third quarter.

Paramount announced on Monday that a settlement had been reached, clearing the path for the merger. Critics, however, accused Bonta and Newsom of yielding to Paramount, especially after reports indicated that CEO David Ellison considered relocating the company's headquarters from California if a deal wasn't secured. Newsom refuted these claims, stating he advocated for a business-oriented resolution.

"I didn’t pressure anybody," Newsom told Axios. "I made the point. I’ve made it very publicly and consistently and been reported maybe two or three hundred different ways that we, me, many folks, including the mayor, soon-to-be governor-elect [Xavier] Becerra and others, preferred, in the words of Rob Bonta himself, that he focus on getting this done at the boardroom, not the courtroom."

Newsom added, "And the minute that Rob said that on CNBC, we amplified that, said this was a better approach. That was the framework, and he worked hard to deliver for California, and I think he did."

Bonta confirmed the settlement but emphasized it was not an endorsement of the merger itself. "This settlement is not a vote of support for this merger; it is not a blessing of the broader merger," Bonta stated. He further explained, "I am always willing to come to the table for honest, good-faith negotiations, and when we can find a strong solution that protects competition and consumers, I’d rather resolve the case, the issue, in the boardroom instead of the courtroom. That’s what happened here."

Despite Newsom's and Bonta's statements, some progressive figures and Democrats, including Senator Elizabeth Warren of Massachusetts, have voiced opposition to the settlement. Warren condemned the outcome, calling it a "disastrous outcome" that allows a "Trump-aligned, foreign-owned conglomerate to dominate American news and entertainment." She argued that the settlement would lead to higher prices, fewer jobs, and concentrate media control in the hands of a few billionaires.

Joseph Vazquez, associate editor at Media Research Center Business, criticized the situation as "left-wing virtue-signaling" succumbing to economic realities. He suggested that California had become a difficult environment for businesses and that the settlement was a pragmatic move to prevent Paramount from relocating to more business-friendly states. Vazquez noted the political expediency for Democrats, especially in a midterm election year, to avoid being seen as hostile to business interests, even within the lucrative Hollywood market.

Earlier reports had suggested that Ellison was contemplating moving Paramount's headquarters if the merger faced significant legal hurdles, a concern that had been amplified by critics of the deal.