Newsom Pushes for Out-of-Court Settlement in Paramount Merger Fight

California Governor Gavin Newsom publicly backed an out-of-court resolution to the antitrust lawsuit challenging the Paramount–Warner Bros. Discovery merger on Friday, while insisting that any settlement must represent the strongest possible outcome for the state. His remarks reflect mounting pressure on Attorney General Rob Bonta as a critical financial deadline for the deal draws closer.

Newsom Calls for Boardroom, Not Courtroom

Speaking at a press conference in San Francisco, Newsom said he supports AG Bonta's stated preference for resolving the dispute through negotiation rather than litigation. "Earlier this week, you heard the attorney general himself say he'd prefer this settled in the boardroom, not the courtroom," Newsom said, according to TheWrap. The governor framed the central question not as whether to settle, but whether a settlement offering adequate terms is achievable.

Newsom acknowledged that discussions are already underway in real time, noting numerous meetings and ongoing conversations about what a resolution might look like. He offered assurances that the process is active, though he stopped short of predicting an outcome.

Coalition Complicates Path to Deal

One significant obstacle Newsom flagged is the multistate nature of the legal challenge. Bonta is not acting unilaterally — he is part of a coalition of attorneys general from roughly a dozen states who jointly filed the suit to block the merger. Any settlement would need to satisfy that broader group, not just California's interests, the governor noted.

Newsom has previously expressed concern about the scope of the attorneys general's lawsuit, signaling early on that he viewed the legal action with caution given its potential economic consequences for the state.

Hollywood Jobs Hang in the Balance

Central to Newsom's position is the threat of job losses. Paramount CEO David Ellison has warned that if Bonta refuses to negotiate a settlement before a $7 million per day ticking fee activates on October 1, he would consider relocating Paramount — or a combined Paramount–WBD entity — out of California. A source with direct knowledge of the situation described an hourlong meeting Ellison held on the Paramount lot with senior executives, in which he reiterated his preference to retain the company's approximately 30,000 Southern California jobs but drew a clear line on the timeline.

Newsom said he does not believe Paramount is likely to leave the state, but he is not dismissing the threat. "We're hoping that doesn't happen and I'm of the belief that they don't want to see that happen," he said.

Governor Keeps Focus on Industry's Future

Newsom repeatedly framed his involvement in terms of California's long-term economic and cultural identity. "I'm very mindful of what this means to the state. I'm concerned about the state, our reputation," he said, adding that his concern extends to "the future of the industry" and "Hollywood" broadly.

The governor stopped short of weighing in on the merits of the merger itself, describing that judgment as squarely within Bonta's authority. His office has nonetheless been working to encourage a negotiated outcome rather than prolonged courtroom proceedings.

Newsom also pointed to ongoing efforts to strengthen California's entertainment industry more broadly, including an expansion of the state's film and television tax credit program — a priority that has drawn attention from industry advocates. SAG-AFTRA's Sean Astin has separately pressed Newsom to support a postproduction tax bill as part of a wider push to keep film work within the state.

The governor's public statements have not gone unnoticed by critics, either. Spencer Pratt has been among those publicly challenging Newsom and Bonta's handling of the Paramount lawsuit, reflecting the broader cultural attention the dispute has attracted.

With the October 1 deadline approaching and a multistate coalition to coordinate, the window for a negotiated resolution is narrowing rapidly.