California officials have agreed to settle lawsuits aimed at blocking Paramount’s $81 billion merger with Warner Bros., prompting celebrities to condemn the deal as a “huge win for Trump.”
California Attorney General Rob Bonta, who led the legal challenge alongside 11 other state attorneys general, and the Writers Guild of America reached agreements Monday. The settlements effectively clear a major obstacle to the billion-dollar merger.
The decision sparked an immediate backlash in Hollywood. Marvel actor Mark Ruffalo, a frequent and outspoken voice on political issues, criticized Governor Gavin Newsom over the settlement in a post on X.
“Gavin Newsom hands huge win to Trump and his billionaire cronies,” Ruffalo wrote while responding to a statement from Alvaro Bedoya, a senior adviser at the American Economic Liberties Project and former Federal Trade Commission commissioner.
“Today, billionaires have yet again bribed, censored, and bullied their way to the top,” Bedoya said. “Layoffs will follow. People from L.A. to Atlanta will lose their jobs, small businesses will lose their contracts, your cable bill and movie ticket will be even more expensive.”
Political concerns have followed Paramount’s pursuit of Warner Bros. for months, particularly because of the relationship between the family of Paramount CEO David Ellison and President Donald Trump.
Ruffalo had previously urged Bonta to continue fighting the merger rather than settle the lawsuit.
“Don’t you dare … do not cave. 5,670 film makers put their necks on the line for you to fight this merger. Another 75,000+ and counting have signed to tell you not to concede in just 3 weeks,” Ruffalo said.
The actor also warned that Bonta’s constituents would “be hurt if you let this lousy deal filled with empty promises go forward.”
State Attorney General Rob Bonta, pictured above, and 11 other state attorneys general settled their lawsuit seeking to block Paramount’s $81 billion merger with Warner Bros. Discovery
Marvel star Mark Ruffalo criticized Governor Gavin Newsom, calling the settlement a “huge win” for President Donald Trump, whose family has a relationship with Paramount CEO David Ellison’s family
Ellison, pictured, welcomed the terms reached Monday with the states and the Writers Guild of America, calling them “complete clearance” for the Warner merger and saying the combination would “build a stronger Hollywood”
The merger would bring several major news networks under the same corporate umbrella, including CNN, which the Republican administration barred from the White House over what Trump described as unfavorable coverage.
Newsom, however, portrayed the agreement as a victory for workers and California’s creative economy.
“It protects California jobs while putting a safeguard in place to help preserve editorial independence for two of America’s most important news organizations,” the governor said.
Under the terms announced Monday, Paramount pledged to expand film production in the United States, contribute millions of dollars to a fund for workers displaced by the merger and establish new oversight of editorial independence within the company’s news operations.
The settlement must still receive final approval from a judge.
Ellison welcomed the agreements with the states and the Writers Guild of America, saying Monday that they provided “complete clearance” for Paramount’s merger with Warner Bros. He again argued that the combination would “build a stronger Hollywood.”
Critics, meanwhile, denounced the settlement as inadequate and accused the state attorneys general of yielding to corporate pressure. Many had viewed the lawsuit as the final significant barrier preventing a combined Paramount-Warner from becoming reality.
Negotiations remained contentious for months. Even after the companies announced additional remedies Monday, Bonta and the other state prosecutors involved in the case said they still believed Paramount and Warner Bros. should not merge.
Key news networks would be brought together including CNN, which the Republican administration barred from the White House over what Trump called unfavorable coverage
Talks were contentious for months – and, despite new remedies announced Monday, Bonta and other state prosecutors who sued said that they still didn’t think the companies should merge
The coalition of states – which, beyond California, also includes entertainment heavyweight New York – sued to block the merger in July, alleging it would ‘extinguish competition’ and lead to fewer choices for consumers, particularly movie theatergoers and cable customers.
In Monday’s agreement, the states said they had secured a handful of ‘court enforceable’ commitments from Paramount – including pledges to increase domestic film production over the next five years by spending at least an additional $1.5 billion, or $300 million per year, and commit another $47.5 million to help fund training and career development for workers displaced by the merger.
Paramount also must make good on its promise to release 30 films each year for the next two years and 32 films in each of the three years after that.
If it fails to do so, the states say it will be required to divest from Miramax Studios and pay $30 million for each missed film toward health care and retirement trust funds associated with the Writers Guild of America and other industry unions.
When it comes to cable, Monday’s settlement orders the company to negotiate deals for current Paramount-owned and Warner-owned basic channels separately for the next five years, which the states say will help keep consumer prices down.
The company must also form a ‘News Editorial Independence Board’ monitoring news operations at CBS and CNN.
Bonta said in a news conference in Los Angeles the settlement was about ‘protecting people’s careers, the lives they’ve built here in California, the livelihoods their families rely on,’ while maintaining it was not a vote for the merger.
The Writers Guild of America, which filed its own lawsuit in July challenging the merger on the grounds it specifically harms Hollywood writers, separately confirmed that it also settled its case – concluding that it couldn’t continue its legal fight alone.
Bonta said in a news conference in Los Angeles the settlement was about ‘protecting people’s careers, the lives they’ve built here in California, the livelihoods their families rely on,’ while maintaining it was not a vote for the merger
Critics, however, decried the settlement terms as too weak and accused the state attorneys general of capitulating to corporate pressure. Many saw the litigation as the last guardrail from keeping a combined Paramount-Warner from becoming a reality
‘We continue to believe the merger will cause damage to writers and the industry at large,’ the WGA said in a statement. The union maintained that as a nonprofit ‘with no backing from government enforcers,’ the complex litigation would have cost millions of dollars.
New York Attorney General Letitia James, who helped secure Paramount’s commitment to put $17.5 million in the Writers Guild health care fund, said she will monitor the company’s activities ‘to ensure they are following this agreement and the law.’
The settlement comes after mounting fears that the iconic movie studio would move out if the lawsuit could not reach an agreement – costing thousands of jobs and serving the state a huge economic blow.
Paramount previously agreed to delay its transaction well into next year so the challenges could make their way through court. But it soon called for a settlement – notably as it looked increasingly likely that the price tag for Warner could get a lot more expensive.
Paramount had promised to pay shareholders ‘ticking’ fee compensation amounting to $7 million each day the deal was not closed past Sept. 30.
Including billions of dollars in debt, Paramount’s buyout of Warner is currently valued at about $111 billion based on outstanding shares.
Over the weekend, a handful of lawmakers, including Democratic Senators Elizabeth Warren and Cory Booker, urged the states to keep up their fight.
Other critics decried the deal Monday while warning what further consolidation could mean in an industry controlled by just a few major players.
Paramount previously agreed to delay its transaction well into next year so the challenges could make their way through court. But it soon called for a settlement – notably as it looked increasingly likely that the price tag for Warner could get a lot more expensive
The settlement comes after mounting fears that the iconic movie studio would move out if the lawsuit could not reach an agreement – costing thousands of jobs and serving the state a huge economic blow
Connecticut Attorney General William Tong, whose state was among those filing suit, said his main goal had been to protect the editorial independence of CNN and CBS News and that he wanted to see a full divestiture of the two news organizations
In a statement Monday, Ellison said that the newly combined company would be based in Los Angeles.
‘We aren’t going anywhere. Our history is here and this is where our future is being built,’ he said.
Paramount never publicly commented on a potential move from California, and Monday’s settlement doesn’t specify that its headquarters stay in the state. But over the summer, Tennessee officials wrote Ellison a letter encouraging Paramount to relocate there.
Connecticut Attorney General William Tong, whose state was among those filing suit, said his main goal had been to protect the editorial independence of CNN and CBS News and that he wanted to see a full divestiture of the two news organizations.
A week ago, Tong said, Paramount refused to agree to any editorial independence for the news outlets.
‘We wanted to save ethical and independent journalism and news,’ he said in a statement.
Tong and others stressed that it was an uphill battle after the Trump administration decided against intervening. In June, the US Justice Department released a lengthy statement supporting the merger.
‘The complete abdication of the federal government’s enforcement role in this fight left states with one arm tied behind our backs,’ Tong said.
The Daily Mail reached out to Governor Newsom’s Office, Paramount, Warner Bros, The Writers Guild of America, State Attorney General Rob Bonta and Mark Ruffalo’s management team for comment.
