Rob Bonta, California’s Attorney General, is taking a close look at Paramount Skydance’s move to buy Warner Bros. Discovery. He made it clear that this deal isn’t finalized yet, warning both companies not to celebrate too soon. “This isn’t a done deal,” he said. The California Department of Justice is still investigating, and Bonta is committed to a thorough review.
The situation is quite dynamic. Recently, Paramount raised its bid for Warner Bros. Discovery, making it hard for the board members to decline the offer. Netflix, which had previously secured a sale agreement with Warner Bros., chose to step back, stating that the deal was “no longer financially attractive” due to the rising costs.
Bonta had already cautioned both Netflix and Warner Bros. about the implications of such a merger. This scrutiny shows the growing concern around consolidating major companies in the entertainment world. The political landscape is complex; even former President Trump has criticized mainstream media, adding tension to the discussion around big media mergers.
On the same day Netflix withdrew from the negotiations, a group of 11 state attorneys general—mostly from Republican states—urged the Department of Justice to investigate the Netflix-Warner Bros. deal further. They expressed worries that this merger could limit competition, increase prices, and stifle innovation. They highlighted that streaming subscribers might end up paying more and that the theater industry could suffer as a result.
This coalition of attorneys general represents states like Alabama, Montana, and South Carolina. Their letter emphasized that the U.S. is a leader in the global film industry and raised alarms about Netflix’s ambitions to dominate the market.
In addition, recent statistics show that streaming prices have been steadily rising across platforms. According to a 2023 survey, nearly 65% of subscribers reported higher streaming bills over the past two years. This ongoing trend intensifies concerns about affordability and competition in the market.
The future of this deal remains uncertain, and many are watching closely. If the acquisition goes through, it could reshape the landscape of both streaming services and traditional filmmaking.
Source link
Rob Bonta,Warner Bros. Discovery
