Paramount Skydance Corp. has approached California regulators with proposed measures intended to ease antitrust concerns tied to its planned $110 billion acquisition of Warner Bros. Discovery Inc., according to Bloomberg.
The outreach comes as state officials continue examining the potential competitive effects of one of the largest media transactions in recent years. Per Bloomberg, Paramount has informed California Attorney General Rob Bonta’s office that it is prepared to take steps aimed at resolving issues raised during the review process. People familiar with the matter told Bloomberg that the company submitted a list of potential remedies, though the details of those proposals have not been disclosed.
The discussions have taken place privately, and neither the timing of Paramount’s communication nor the exact nature of the concessions has been made public.
In a statement, Paramount said it remains engaged with regulators while disputing the notion that the merger poses antitrust risks.
“We continue to engage constructively with regulators, including state attorneys general, and are always prepared to address legitimate, clearly articulated antitrust concerns,” the company said. “However, we do not believe any aspect of this transaction raises such concerns.”
California has emerged as a central player in the regulatory review. According to Bloomberg, the state is coordinating with other attorneys general as officials assess whether the merger could reduce competition in the entertainment industry. Areas of focus reportedly include the combined company’s influence in negotiations with film and television creators and suppliers.
A spokesperson for Bonta’s office indicated that the investigation remains ongoing.
“The Paramount acquisition of Warner Brothers remains an active investigation, and we do not have any updates to share at this time,” Elissa Perez, a spokesperson for the attorney general, said.
The proposed combination would significantly expand Paramount’s footprint across film, television, news, and streaming. If completed, the transaction would unite major entertainment properties under a single corporate umbrella, including movie studios, cable channels, streaming platforms, and broadcast news operations.
Related: States Prepare Antitrust Challenge to Paramount-Warner Bros. Deal
Opponents of the deal have argued that greater consolidation could have negative consequences for workers and consumers. Earlier this year, Bonta voiced skepticism about the merger, warning of potential impacts ranging from higher consumer costs to fewer employment opportunities and reduced quality in media offerings. Labor organizations, industry talent, and some elected officials have also expressed concerns about how the transaction could affect jobs and competition.
Paramount has countered that scale is increasingly important in a market dominated by large technology and streaming companies. The company argues that combining with Warner Bros. Discovery would strengthen its ability to compete for audiences, content, and advertising revenue against major digital rivals.
According to Bloomberg, the company has already shown a willingness to discuss asset sales with regulators in other jurisdictions. Bloomberg previously reported that Paramount was open to potentially divesting certain children’s television networks as part of talks with European Union authorities.
To bolster its case, Paramount has highlighted commitments related to content creation. The company has said the combined business would increase production activity, including a pledge to release at least 30 theatrical films annually and expand television programming output in the coming years.
“This is a pro-competitive transaction that will create a stronger competitor with the scale, flexibility, and resources needed to compete more effectively for audiences, premium content, and creative talent,” Paramount said.
Financial markets reacted modestly to reports of the company’s regulatory outreach. Paramount shares gained 1.7% on Monday following Bloomberg’s report, while Warner Bros. Discovery stock also moved higher.
Source: Bloomberg
