Paramount sends letter California AG urging merger approval
Paramount sends letter California AG urging merger approval
The company is trying to convince California Attorney General Rob Bonta that its merger with Warner Bros. Discovery won’t lead to a signifigant drop in releases.
Paramount Skydance may not be anticipating much resistance from the federal government regarding its merger with Warner Bros. Discovery, but the state of California may be a tougher obstacle to surmount. Last week, Paramount’s chief legal officer Makan Delrahim wrote a letter to California Attorney General Rob Bonta, assuring him that the combination of Paramount and WBD will boost theatrical distribution instead of shrinking it.
Key Details:
- We promise: Paramount’s letter assures Bonta that theatrical releases will not shrink when the WBD merger concludes.
- Mulling ot over: Bonta is considering halting the deal with an antitrust challenge.
- Unpopular: A long list of Hollywood stars and creatives have signed their own letter opposing the deal.
In Paramount’s letter, Delrahim tells Bonta that, counter to the prevailing narrative that Paramount will cut theatrical output once it controls its own movie studio in addition to those currently owned by Warner Bros., the output of theatrically released movies will increase once the two companies become one.
“Paramount’s proposed merger with WBD will help drive meaningful improvements for movie theaters and their audiences,” the letter reads. “To compete more effectively with Netflix, and other leading services, a combined Paramount-WBD will need to capture audiences’ attention in fresh ways, and that includes broadening theatrical distribution to tap into the magic of the moviegoing experience and create momentum behind films before they reach streaming services.
Delrahim also reiterated pledges from Paramount CEO David Ellison to release 30 films in theaters annually, and to preserve the 45-day minimum window for “WarnerMount” films before moving them to streaming services. The letter also calls movie theaters a “core part” of the new company’s strategy to boost engagement.
Bonta has been slow to warm to the merger, telling Deadline in March, “Whenever there’s major corporate consolidation like this, there’s a concern that we might see increased prices, lower wages, reduction in competition, limits in choice, lower quality, all those things. That’s why there is antitrust law in the first place.”
At a press briefing on Monday, Bonta said of the deal, “There are red flags everywhere for us. We’re looking at things like higher prices, lower wages, fewer jobs, less quality, less choice, less competition — the things that you look at when you’re looking at an antitrust case and a proposed merger.”
The transaction is seeing resistance in multiple Hollywood circles. In April, a group of over 1,000 actors and creatives signed a letter opposing the merger, which has since attracted more than 5,000 signatures. Paramount clearly has more damage control to do as it seeks to push the merger through by the third quarter of 2026.
Paramount Plus
Paramount+ is a subscription video streaming service that includes on-demand access to 40,000+ TV show episodes from BET, CBS, Comedy Central, MTV, Nickelodeon, Nick Jr., and more. Get free access with a Walmart+ subscription.
Paramount+ includes “1883,” “Tulsa King,” “Star Trek: Discovery,” “SpongeBob SquarePants,” and “PAW Patrol.” Subscribers can watch the NFL, college football, The Masters, college basketball, UEFA Champions League, UEFA Europa League, Serie A, and NWSL. The service also offers the option to watch your live CBS affiliate. The upgraded ad-free package includes premium movies and shows from Showtime.