California Attorney General Rob Bonta announced his office would oppose the proposed merger between Paramount Global and Skydance Media, citing competition and consumer protection concerns. Bonta's position aligns with federal scrutiny of the deal, though the Justice Department under the Biden administration has not filed formal objections.
Bonta raised specific concerns about media consolidation, arguing the merger would reduce competition in broadcast television and streaming services. He emphasized that California's consumers face higher costs and fewer programming choices if the transaction proceeds without modification.
The California AG's intervention adds state-level pressure to a deal already under federal review. While federal antitrust authorities typically lead merger scrutiny, state attorneys general possess independent authority to challenge combinations that harm their residents. Bonta's decision reflects growing bipartisan concern about concentration in the media and technology sectors.
Bonta also addressed the incoming Trump administration's Department of Justice, noting uncertainty about how it would handle pending merger reviews. Trump's DOJ has not announced clear antitrust priorities, creating unpredictability for corporations awaiting clearance on major deals. Bonta indicated that California would proceed independently regardless of federal action.
The Paramount-Skydance proposal would combine two major entertainment companies as the industry undergoes rapid consolidation driven by streaming competition. Skydance would gain control of Paramount's traditional broadcast assets, including CBS and MTV Networks, alongside its streaming platform Paramount Plus.
Consumer advocacy groups have supported state-level challenges, arguing that reduced media ownership diversity harms public discourse. Industry supporters counter that the merger creates efficiencies and allows both companies to compete more effectively against tech giants like Amazon and Netflix.
The case remains unresolved, with no timeline announced for state or federal decisions. Bonta's opposition establishes California as a potential blocking point for the transaction if other jurisdictions fail to intervene.