L.A. Mayor Karen Bass Weighs In on Paramount-Warner Bros. Merger, Urges California AG Rob Bonta to Engage in Talks on Antitrust Case: ‘This Is Not About Taking Sides’
Los Angeles Mayor Karen Bass urged California attorney general Rob Bonta and Paramount to resolve their differences and work “urgently” to find a resolution to the 12-state antitrust lawsuit that is blocking Paramount’s takeover of Warner Bros. Discovery.
“While there are varying perspectives on the proposed transaction, today we are united around one clear message: It is time for all parties to come to the table,” Bass said at a press conference Thursday.
She continued, “The continued uncertainty is not good for workers, not good for productions and not good for the future of this industry. Too many productions in L.A. are now at a standstill, which means Angelenos are out of a job and they’re not getting paid.”
Bass, a Democrat, said that any settlement among the parties “must include meaningful and enforceable commitments to keep Paramount and Warner Brothers Discovery in L.A. as well as maintaining jobs, productions and investments in L.A. and California.”
“This is not about taking sides,” the mayor said. “This is about fighting for Los Angeles, standing up for our union workers, keeping Paramount here, and protecting the future of this industry. L.A. has been home to the entertainment industry for generations, and we intend to do everything we can to keep it here.”
At Thursday’s press conference, Bass said, “As mayor, I cannot stand by while the job security of thousands of hardworking union members is being put at risk. That is why we are calling on Paramount, attorney general Rob Bonta, and all relevant parties to come together, engage directly and in good faith, and work urgently to find common ground and keep our vital industry in Los Angeles at a time when film and television production is already facing significant challenges.”
The mayor’s office said she issued her call to action after meeting with entertainment industry labor leaders and members of her Entertainment Industry Council.
Not mentioned by Bass in her remarks: a report issued Wednesday by Los Angeles County that estimates the Paramount-Warner Bros. Discovery merger could eliminate about 4,500 film and TV jobs over three years. The report said the combination of the two companies would accelerate the downturn in L.A. production, which has already cost 52,000 jobs over the last four years. A Paramount rep said in response to the report: “L.A. County’s own economic report underscores what we have been saying all along: our industry is in decline, production is down and jobs are being lost — and lost for good if we don’t act.”
Bass joins fellow Democrat Xavier Becerra, the frontrunner in the race for California governor, in calling for a swift denouement to the Paramount-Warner Bros. legal stalemate. Becerra recently said a settlement between Paramount and the state AGs would be the best outcome. “I hope it settles” before the case goes to trial, Becerra said at a Politico conference on Aug. 11. “It is easier to stand in a conference room and settle than it is to stand in a courtroom.”
The 12 states, led by Bonta, sued in federal court in July to block Paramount’s takeover of Warner Bros. Discovery. The states have alleged the proposed merger will illegally reduce competition in the markets for theatrical and blockbuster films, as well as basic cable TV. Paramount agreed to pause the WBD merger until after the case goes to trial, which is scheduled for March 2, 2027. But Paramount wants to resolve the legal matter as soon as possible, including because as of Oct. 1 it will start incurring a $7 million daily “ticking fee” payable to Warner Bros. Discovery shareholders until the merger closes.
David Ellison, Paramount’s chairman and CEO, recently told his senior-level team that Paramount will begin the process of relocating out of California as soon as Oct. 1 unless the Warner Bros. Discovery merger closes by the end of September. That was interpreted as a threat by Bonta, who said Ellison’s plan to exit the Golden State was an “attempt to blackmail the state into letting an illegal deal through.”
Last week, in a statement, Ellison said his company has “offered commitments and concessions and remain open to working constructively with the state AGs to find a path forward in the interest of our employees and the creative community in California and across the world.” Bonta, meanwhile, has said that the only acceptable terms of a settlement would be “structural” remedies (like divestitures or keeping certain business operations separate) rather than “behavioral” ones, such as Paramount’s pledge to release more than 30 movies annually to theaters with a 45-day window.
The three biggest U.S. theater chains — AMC Theatres, Regal Cinemas and Cinemark — are backing the Paramount-Warner Bros. merger. The Directors Guild of America and IATSE also have urged Bonta to settle the antitrust lawsuit, arguing that prolonged uncertainty over the merger is detrimental to the industry. The Writers Guild of America, however, has filed its own antitrust lawsuit seeking to block Paramount-WBD, alleging it would.
Bass on Thursday said time was of the essence to find a path to allow Paramount and Warner Bros. to merge. “We cannot afford prolonged uncertainty that delays investment, puts production on hold, and creates greater instability for thousands of workers and families,” she said. “Any resolution must put workers and the long-term health of our entertainment industry at the center.”
Bass said, “It is not by accident that L.A. is the entertainment capital. We have unparalleled talent, unlimited creativity, a skilled workforce, and the highest amount of production space in the world. Today, we are speaking up to project to protect this legacy.”
Following Bass’s press conference, the WGA slammed her comments, accusing the mayor of joining “Paramount’s pressure campaign on public enforcers.”
“We are disappointed that Mayor Bass has chosen to join Paramount’s pressure campaign on public enforcers, to push through a merger that is being rightfully challenged as illegal and will lead to job losses in the entertainment industry,” the WGA said in a statement. “Her statement comes on the heels of a county report estimating thousands of jobs will be lost if the merger proceeds. Industry workers deserve a mayor who believes in upholding the law and protecting the working people of Los Angeles, not serving the interests of powerful corporations.”
The WGA statement continued: “Paramount has created a false choice for entertainment industry workers: The company argues that enforcing antitrust law hurts us by creating uncertainty, which is of their own making as the company attempts to dominate the industry. We reject the claim that beleaguered industry workers must choose the possibility of a job today, in exchange for the certainty of job losses tomorrow.”
Variety has reached out to Bass’s office for comment.
Meanwhile, Paramount filed a motion with the court on Monday seeking to force the states and the WGA to post a $1.88 billion bond to cover the company’s losses related to the WBD ticking fees. Bonta’s office said Paramount was seeking a “do-over” on its agreement to delay the Warner Bros. Discovery merger until after the antitrust trial.