California Attorney General Robert Bonta told Reuters that he will soon decide whether to sue Paramount in order to block its $110 billion acquisition of Warner Bros. His office has been reviewing the deal for potential violations of U.S. antitrust law amid widespread concerns that the deal will decrease competition across the industry, leading to higher prices, lower wages, and fewer options for consumers and content buyers.
“There’s not a lot of time left before we will need to act if that’s what we decide to do,” Bonta said. Bonta said his office has heard from many workers in the industry and that their concerns have raised “even more red flags,” amid fears in Hollywood over the potential for fewer productions.
Antitrust enforcers can challenge mergers that would significantly harm competition, including competition among employers for specialized labor. “We think we have a central role in being able to protect jobs in Hollywood with respect to the Paramount-Warner Brothers proposed merger,” Bonta said.
READ: Warner Bros. Discovery, Paramount merger faces shareholder scrutiny (April 23, 2026)
When asked whether Paramount should be required to spin off any parts of its business to protect competition, Bonta said that behavioral remedies, where companies agree to take particular actions, are not always adequate.
“Can they be part of a solution? Maybe. Should they be backed, if they’re even pursued at all, by a structural remedy consequence if they’re not adequate? I’d say so. That’s kind of the way I’m thinking about it,” he said.
A Paramount spokesperson said the company has “every economic incentive” to expand production after the merger in order to grow streaming service subscriptions. Paramount CEO David Ellison said that the combined company will release 30 movies per year in theaters.
Paramount recently said in court papers that it views theatrical releases as key to marketing its streaming offerings.
Paramount Chief Legal Officer Makan Delrahim said in a statement that the company is “always prepared to remedy legitimate and articulated violations of the antitrust laws,” but that it believes the deal presents none.
Read: Warner Bros. celebrates Oscar success amid looming Paramount deal (March 16, 2026)
The deal between Warner Bros. and Paramount Skydance came earlier this year after a monthslong contest between Paramount and Netflix.
California’s Department of Justice has the largest antitrust division in the country with just under 50 people. Bonta mentioned that the state is adding eight more attorneys this year along with eight support staff. California Governor Gavin Newsom has proposed adding $14.3 million to Bonta’s budget for antitrust work.
The Reuters report mentioned that other states have talked to California about a joint challenge to the deal but there has been no agreement over the approach.
“The full range of options are on the table and available and are fully resourced, no matter what we decide,” Bonta said when asked if the state was prepared to take action on its own.