Gavin Newsom Says Paramount Settlement Talks Happening in “Real Time,” Signals He’d Like a Deal
Gavin Newsom signaled his support on Friday for settlement talks in the antitrust suit seeking to block the Paramount-Warner Bros. merger.
When asked about his stance on the controversial merger and the antitrust suit from 12 states challenging it at a press appearance in San Francisco, the California governor gestured to remarks made by the state’s Attorney General Rob Bonta earlier in the week. “Look, I was appreciative, I think this week, earlier this week, you heard the attorney general himself say he’d prefer this settled in the boardroom, not the courtroom,” Newsom said. “So I think there’s some universal sentiment there, if that’s possible. The question is if that’s possible. And what’s the best deal, what’s the landing? And that has to be worked through.”
The governor suggested that talks were already happening to determine a way forward for the parties. “That’s a process that’s unfolding, I assure you, in real time,” he said on Friday. “I know there are many meetings that are going on and there’s a lot of conversation about what that could look like, but the attorney general is not just representing the state of California, he’s also part of this coalition with a dozen other states. So we also have to be mindful of that coalition as well.”
Newsom’s remarks followed a report in The Wall Street Journal on July 31 stating that the governor was concerned about the states‘ antitrust suit. The story reported that, wary of potential consequences for employment in California, Newsom had encouraged Bonta to find a solution out of court. At the time, the governor did not confirm or comment on the record about his stance.
That changed on Friday. When asked about a recent threat made by Paramount Skydance CEO David Ellison to take one or two of Hollywood’s remaining historic studios out of California if the antitrust suit isn’t resolved by October, Newsom said he was taking the remarks “seriously.” He said, “We’re hoping that doesn’t happen. And I’m of the belief that they don’t want to see that happen. It’s not, I don’t think, in the company’s long-term interest, but I take it seriously.”
He added that he was talking to people on all sides of the debate, given the stakes for California. “I’m very mindful of what this means to the state, I‘m concerned about the state, our reputation,” the governor said.
His support for settlement talks puts him in the same camp as Xavier Becerra, the Democratic candidate for California governor in this year’s elections. It also aligns him with L.A. Mayor Karen Bass, who expressed her desire for both parties to “come to the table” and “work urgently to find common ground” on Thursday.