California Gov. Gavin Newson said Friday that he wants State Attorney General Rob Bonta to settle his lawsuit against the Paramount-Warner Bros. Discovery merger out of court, but only for “the best deal.”
“Earlier this week, you heard the attorney general himself say he’d prefer this settled in the boardroom, not the courtroom, so I think there’s some universal sentiment there, if that’s possible,” Newsom said at a San Francisco press conference. “The question is: Is that possible? And what’s the best deal? That has to be worked through and that’s a process that’s unfolding.”
The governor added that the parties are in “real time” talks — “I assure you.”
“I know there are many meetings that are going on. There’s a lot of conversation about what that could look like,” Newsom continued. “But the attorney general is not jus representing the state of California, he’s also part of this larger coalition with a dozen states. So we also have to be mindful of that coalition as well.”
Newsom has previously warned Californians that if the merger is blocked, employment in the state could suffer. His office has encouraged Bonta to find an out-of-court settlement with Paramount.
“I’m very mindful of what this means to the state. I’m concerned about the state, our reputation,” Newsom said in the Friday press conference. “I’m talking about the future of the industry. I’m talking about Hollywood.”
When pressed on if Paramount may actually leave California, Newsom said he did not think it was likely but that he’s taking the possibility seriously.
“We’re hoping that doesn’t happen and I’m of the belief that they don’t want to see that happen,” he said.
Watch a clip from the conference below:
Paramount CEO David Ellison threatened that he would move the company out of the state if the State AGs did not cooperate with the merger earlier this month.
An individual with knowledge of the situation told TheWrap that Ellison held an hourlong lunch meeting on the Paramount lot with his executive leadership team in which he insisted his goal was to keep the company’s 30,000 jobs in Southern California but cautioned that if Bonta won’t negotiate a settlement by the time the company’s $7 million per day ticking fee kicks in Oct. 1, he will move Paramount or the combined Paramount-WBD out of state.
Reports from July 31 claimed Newsom expressed concern over the 12 state attorneys general’s lawsuit seeking to block the merger.
On Friday the governor added that he wants to see Hollywood thrive and remain in the state.
“I want to see Hollywood thrive, and we’ve been working hard doubling that tax credit. We continue to make progress to do more to support the industry and support local government,” he said. “So this is a big deal, and I’m not going to get in the merits or demerits of the merger. That’s the attorney general’s purview right now.”
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