California AG Rob Bonta says a CNN spin-off wouldn’t resolve Paramount–WBD lawsuit
California Attorney General Challenges Paramount-WBD Merger Amidst Speculation
California AG Rob Bonta says a CNN – Legal proceedings surrounding the proposed merger between Paramount Global and Warner Bros. Discovery have intensified, with attorneys representing a twelve-state coalition presenting their case in federal court on Friday. The coalition’s legal team argued that a temporary restraining order remains essential to prevent the entertainment giants from finalizing their combined deal. Judge Araceli Martínez-Olguín considered arguments from both sides during the hearing, with Paramount presenting its position against the proposed injunction.
According to earlier CNN reporting, industry observers anticipate the judge will grant the temporary restraining order, which would effectively pause the merger process for approximately two weeks while litigation continues. Martínez-Olguín chose not to issue an immediate decision on Friday, instead announcing that her ruling regarding the temporary restraining order would be delivered by Wednesday, July 22.
Bonta Addresses Media Speculation
Before Friday’s court session, California Attorney General Rob Bonta participated in an interview with CNN to discuss the ongoing legal battle. Bonta, who is spearheading the coalition of Democratic state attorneys general opposing the transaction, expressed optimism that the temporary restraining order would be approved while acknowledging that additional time might be required for the court’s decision.
The California attorney general made it clear that he wanted to directly address widespread media discussions concerning CNN, the associated financial penalty, and suggestions that Paramount might relocate operations out of California. Bonta characterized some of his adversaries’ positions as attempts to misrepresent facts and generate unnecessary confusion. He emphasized that the coalition’s legal complaint remains unambiguous in its objectives.
When asked whether any settlement discussions were currently underway with Paramount, Bonta provided a definitive response. He stated that the coalition is actively engaged in litigation rather than negotiations, having filed suit and requested both a temporary restraining order and a preliminary injunction to halt the merger entirely.
There are no negotiations. We are suing. We are in litigation. We have sued and sought a TRO and a preliminary injunction seeking to block the merger. That’s it. That’s full stop. That’s where we’re at.
Bonta clarified that while the coalition would welcome a good-faith settlement proposal from Paramount-Warner Bros., any agreement would need to incorporate structural remedies rather than behavioral ones. He expressed skepticism toward promises that might prove unenforceable or fail to materialize based on historical precedent.
Why CNN Spin-Off Alone Falls Short
Media outlets have speculated that divesting CNN could serve as a potential structural remedy for the merger. However, Bonta firmly rejected this notion as inadequate to resolve the coalition’s concerns. He explained that a single structural remedy would likely prove insufficient unless it involved preventing the merger altogether.
Absolutely, 1,000%, no. Not yesterday, not today, not tomorrow. Hell no.
Bonta elaborated that a CNN divestiture or spin-off would not address the specific antitrust issues outlined in their complaint. He noted that while such a remedy might have value greater than zero, it remains far from being the primary focus of their legal challenge. The coalition’s attention centers on three critical market segments: the wide-release theatrical film market, the blockbuster theatrical release market, and the cable channel market.
The California attorney general characterized the CNN speculation as part of an aggressive Paramount public relations campaign designed to sway public opinion. He dismissed suggestions that the lawsuit was politically motivated, emphasizing that the complaint contains no mention of political considerations or the Ellison family’s influence. Bonta maintained that the coalition’s antitrust analysis is thorough and that the merger appears presumptively unlawful across the three identified markets.
But it’s part of this Paramount PR campaign that’s in overdrive. I think they’re trying to play to the court of public opinion. They’re suggesting that, instead of the very clear, clean antitrust analysis that we’ve done here — where I’m sure they’re on their heels because the merger in the three markets we identify is presumptively unlawful — they’re trying to say, ‘Hey, this is just political. This is a Democrat AG, and Democrat AGs just want CNN to be free of the influence of the Ellisons.’ And it’s ridiculous. I mean, that’s not part of our complaint. It’s not adjacent to our complaint. It’s not part of our complaint.
Bonta concluded by reiterating that while the coalition would not oppose Paramount retaining ownership of CNN, such an outcome would not satisfy their legal objectives. The focus remains squarely on the structural changes necessary to address the antitrust concerns raised in their comprehensive complaint.