california atty

Paramount offers to briefly delay Warner Bros. merger as court battle heats up

Paramount Skydance’s top antitrust attorney told a judge Friday that David Ellison’s company would voluntarily delay its proposed $111-billion takeover of Warner Bros. Discovery at least until mid-August amid a legal challenge brought by 12 state attorneys general.

The states, led by California Atty. Gen. Rob Bonta, have asked a judge to issue a temporary restraining order that would prevent Paramount from finalizing its deal as the court battle ramps up. Paramount made the pledge in hopes of avoiding such a ruling that would tie its hands — and give the states an early win in the litigation.

Federal District Judge Araceli Martínez-Olguín said she would decide by Wednesday whether to issue a restraining order.

David Ellison (center) and Lindsay Graham.(Photo by Anna Moneymaker/Getty Images)

Tech scion David Ellison has been a regular in Washington D.C. this year as he races to consolidate Warner Bros. Discovery — less than a year after his family bought Paramount.

(Anna Moneymaker / Getty Images)

Friday’s hearing in Oakland opened the first chapter in the fight over the blockbuster deal that both sides agree would dramatically reshape Hollywood. Two century-old film studios — with rights to Harry Potter, Batman, “Top Gun,” “The Big Bang Theory” and “Game of Thrones” — would be combined, and HBO and CNN would come under new ownership.

Antitrust attorney James H. Weingarten, of the Washington law firm Milbank, represents California and the other states. He told the judge it would be impossible to untangle the two companies if they are allowed to combine.

“If this merger is allowed to close … the harms begin,” Weingarten said. “The job losses, the synergies — that’s the fancy word for ‘we’re going to save money and there might be job cuts.’ All of that process starts rolling.”

Bonta filed the suit Monday, alleging the proposed merger — the largest in Hollywood in decades — would violate the U.S. Clayton Antitrust Act, a 112-year-old law to prevent mergers that weaken competition and raise costs for consumers.

The lawsuit alleges antitrust violations in three markets where the two companies currently compete: wide-release films, potential blockbuster movies and cable television, where the combined entity would own more than 50 cable channels.

Paramount shares fell 4.3% to $8.75 on Friday. Warner stock slipped 1.5% to $26.87 — below Paramount’s offer of $31 a share.

More than two dozen lawyers attended Friday’s hearing, including from Colorado, Oregon, Washington and New York who came to support California, which is leading the case.

Paramount, represented by antitrust lawyer Jeffrey L. Kessler, argued a temporary restraining order was not necessary. The two sides should instead focus on the next big step — whether the judge issues a preliminary injunction, he said. Such a ruling could delay the deal for months.

Kessler said Paramount should be allowed a hearing to defend against a preliminary injunction by the end of August. The company wants to wrap up the litigation by late September to avoid a higher payout to Warner Bros. Discovery shareholders.

In a show of confidence earlier this year, Paramount offered Warner Bros. Discovery shareholders a “ticking fee” of 25 cents for every quarter after Sept. 30 — until the deal was done. Such payments would cost Paramount more than $7 million a day, which Kessler called a “massive injury.”

California Attorney General Rob Bonta in July 2022.  (Genaro Molina / Los Angeles Times)

California Atty Gen. Rob Bonta is leading a coalition of 12 state attorneys general to try to halt Hollywood’s biggest merger in decades.

(Genaro Molina/Los Angeles Times)

Paramount would also have to pay Warner a $7-billion breakup fee should the deal fall apart.

Kessler argued the states had not made a sufficient case that competition would be harmed. “We don’t think they’ve come close to jumping through that hurdle,” Kessler said.

Earlier this year, Kessler represented the state attorney generals in their winning case against Live Nation Entertainment. A jury found that Live Nation, which owns Ticketmaster, operated as a monopoly. This time, Kessler is representing corporate interests.

Prominent Los Angeles litigator Daniel Petrocelli is representing Warner Bros. Discovery.

Paramount hired attorney Jeffrey Kessler to lead its antitrust defense.

Paramount hired attorney Jeffrey Kessler to lead its antitrust defense.

(Noah Berger / Associated Press)

The case was assigned to Martínez-Olguín Wednesday after Paramount requested an earlier judge be removed because he formerly worked as a labor attorney.

Martínez-Olguín said she inherited the case because she was already overseeing another lawsuit dealing with the merger — not because Paramount had agitated for a change.

Source link

After lawsuit, ICE pauses construction of Bay Area detention facility

The federal government agreed to temporarily hold off on construction of a planned Immigration and Customs Enforcement facility in Northern California.

The voluntary pause until Sept. 9 comes after the California Atty. Gen. Rob Bonta and Santa Clara County officials sued the Trump administration last month to block the facility from being developed near Gilroy. The lawsuit remains ongoing.

“This pause in the construction, demolition, and development at the site of the challenged ICE facility is a significant step towards protecting our people, our communities, and our environment while the case remains ongoing,” Bonta said in a statement Monday night.

The Department of Homeland Security, which oversees ICE, didn’t immediately reply to a request for comment.

State and local officials believe the facility will be used for short-term detention of up to 150 people at a time, though ICE denied that it would be a detention center.

Community members and advocates for immigrants swiftly opposed the project. ICE has consistently looked to increase its detention capacity in California, where eight detention centers can now hold a combined 9,000 people, though the state has long been a thorn in the agency’s side.

The halt is part of a compromise between both sides involved in the legal action. After the state and county submitted a request for the court to temporarily halt the project, a hearing was set for Oct. 7.

Now, state and federal officials jointly requested that the court move up the hearing by at least a month. The agreement also extends how much time the federal government has to respond.

A federal judge signed off on the agreement Monday night.

The lawsuit, filed in U.S. District Court in San José, alleges that the leased land is zoned exclusively for agricultural use and that the federal government violated laws requiring state and county notification, as well as procedural steps before beginning construction.

Source link

States sue to block Paramount’s $111-billion Warner Bros. takeover

California Atty. Gen. Rob Bonta and 11 other Democratic state attorneys general filed a lawsuit Monday to block Paramount Skydance’s proposed $111-billion takeover of Warner Bros. Discovery — a last-ditch effort to derail a deal that would transform Hollywood.

Tech scion David Ellison’s proposed merger has been hurtling toward the finish line after securing approvals from the U.S. Justice Department and numerous foreign governments. President Trump, an ally of Ellison’s billionaire father Larry Ellison, favors the deal. He is eager for a big shakeup at CNN, which is currently controlled by Warner Bros.

David Ellison now faces his biggest challenge yet as he attempts to build a new entertainment behemoth.

A Paramount representative did not immediately comment.

The suit, filed in federal court in San Francisco, alleges that the proposed merger would violate the U.S. Clayton Act, a century-old antitrust law to prevent mergers that weaken competition and increase costs for consumers.

“Consolidation here not only leads to higher prices — it also leads to fewer opportunities for important stories to come to life, and fewer ways for audiences to encounter stories, ideas, and perspectives beyond their own experiences,” Bonta said in a statement.

“California and our sister states are fighting for free and fair markets, not rigged markets,” he said.

California and the 11 other states, including New York, New Jersey, Washington and Colorado, allege the merger would devastate the theatrical film business by combining two historic film studio rivals. The Ellison family would control such storied franchises as Harry Potter, Bugs Bunny, Batman, “Top Gun” and “Game of Thrones.”

The proposed purchase also would unite two prominent news organizations — CNN and CBS News.

The states have asked Paramount to delay the closing of its Warner Bros. takeover until the litigation can be resolved.

If Paramount refuses, Bonta said the coalition would seek a temporary restraining order asking a judge to hold up the merger, a move that would cause costly delays and escalate legal expenses for Paramount in their quest to finalize the deal.

Larry Ellison, co-founder of software giant Oracle, is bankrolling his son’s ambitions to acquire a second major entertainment company in less than a year. The Ellison family acquired control of CBS-owner Paramount in August and, at the time, David Ellison touted the move of Paramount’s headquarters from New York’s Times Square to Hollywood.

Now, Paramount is reportedly threatening to leave California in the face of Bonta’s legal action.

If the merger goes through, Paramount would own four streaming services, including Warner’s HBO Max and the dominant U.S. cable TV channel owner with HBO, TBS, HGTV, Animal Planet, Food Network, Comedy Central and Nickelodeon.

The U.S. Justice Department last month approved the merger, saying the combination would likely bolster competition — not harm it. The agency’s decision had been expected because of Larry Ellison’s strong support of Trump.

In a show of confidence earlier this year, the Ellisons agreed to increase the payout to Warner investors should the regulatory approval process drag on. Those extra 25-cent-per-share payments begin with the October-December quarter, and would add more than $650 million in deal costs each quarter — giving David Ellison an increased incentive to quickly close the deal.

The proposed merger has sparked fears in Hollywood that it will bring thousands of job losses — similar to past consolidations, including Walt Disney Co.’s 2019 takeover of Fox entertainment properties.

Some theater owners, hard hit by the pandemic and production slowdowns, have expressed concerns the merger would lead to fewer films being made.

The new colossus would significantly dampen competition, Bonta and the other Democrat prosecutors argue. They pointed to the wide-release movie film distribution business, where Warner Bros. and Paramount control about 27% of the market.

After the merger just four companies — Paramount-Warner, Disney, NBCUniversal and Sony Pictures — would control 86% of the films that were widely released, Bonta said.

Paramount has said the deal will boost competition — not hamper it. Ellison has promised to continue releasing 30 films a year with a combined Warner Bros.-Paramount studio, roughly the current output of the two studios.

Ellison also vowed to protect the HBO brand.

Another concern is the licensing of basic cable TV channels, including CNN and HGTV, to pay-TV providers such as Charter’s Spectrum, DirecTV and Google’s YouTube TV. Warner Bros. is the second largest cable channel owner and Paramount is the third largest. Together their channels would represent about 27% of the market.

The typical threshold for antitrust concerns is at least 30% marketshare.

More than 5,000 entertainment industry workers, including Jane Fonda, Ben Stiller, Bryan Cranston, Javier Bardem, Lin-Manuel Miranda and Mark Ruffalo, signed an open letter calling on Bonta to block the merger.

Some have expressed concerns about marrying CNN and CBS News following months of turmoil at CBS News since David Ellison hired journalist Bari Weiss as CBS News editor in chief. Last month, Weiss orchestrated a dramatic shakeup at the iconic “60 Minutes” news program, with top executives and three well-known correspondents tossed out.

The Ellison family recently shed its movie theater chain, which it picked up as part of the Paramount acquisition, to clear the way for the Warner deal.

California Attorney General Rob Bonta in his office in 2024. (Paul Kuroda / For The Times)

California Atty. Gen. Rob Bonta is leading an effort by state attorneys general to block Paramount’s proposed takeover of Warner Bros. Discovery.

(Paul Kuroda/For The Times)

The deal also faces opposition outside the U.S.
. The British culture minister in late June said she was weighing whether to intervene in the deal due to concerns about maintaining a competitive media market. Britain’s Competition and Markets Authority also has opened an investigation into Paramount’s proposed merger.

In April, a federal judge in Sacramento granted a request from Bonta and seven other attorneys general for a preliminary injunction, which freezes the merger of Nexstar Media Group, which owns KTLA-TV Channel 5, and Tegna. The deal was designed to create the nation’s largest TV outlet group .

A larger group of state attorneys general also won a New York jury verdict against Live Nation Entertainment and its subsidiary Ticketmaster. Jurors found that Live Nation had illegally monopolized the live concert industry.

Bonta also has an ongoing case against Amazon for price fixing, which the company denies.

Still, legal experts say the states may face an uphill climb to detrail the Paramount-Warner Bros. merger because the arrival of Netflix, Amazon and Apple dramatically shifted the landscape.

The tech giants, which introduced consumer-friendly streaming options, have lessened the influence of traditional companies like Paramount and Warner Bros.

Paramount’s deal would mark the third time Warner has changed hands in the last decade.

AT&T bought the company in 2018 and then sold it to the smaller Discovery four years later. That deal left Warner Bros. burdened by debt, leading to deep cost cuts and setting the stage for the Ellison takeover.

Source link

Commentary: TikTok? Crazy neighbor? A new poll sheds light on where voters get their information

One more day and it’ll all be over. I’m referring to the primary election, of course, and the unremitting campaign ads that have infiltrated every aspect of our being as Californians.

Authentic or paid influencers promoting candidates on TikTok and Instagram. Facebook ads vilifying or praising various measures. Incessant, repetitive TV campaigns that get nastier with every election, yet still manage to feel like an analogue remnant from 1982. The worst? Those sponsored leaflets and postcard mailers that end up as makeshift coasters, mosquito swatters or unread refuse that goes straight from the mailbox into the blue recycle bin.

The king of ad spending is Democratic gubernatorial candidate Tom Steyer. He’s behind the most expensive political advertising campaign in the country this year. A former hedge fund manager, Steyer has reportedly spent more than $200 million on his campaign, with a major chunk of that for broadcast TV, cable and radio — 20 times the amount spent by fellow Democrat, former U.S. Secretary of Health and Human Services and California Atty. Gen. Xavier Becerra. And Steyer is still polling behind Becerra.

I never thought I’d write this but it’s not always about the money.

Xavier Becerra, front-runner in the race for California governor, speaks before a crowd at UFCW Local 1167 Union Hall.

Xavier Becerra, front-runner in the race for California governor, speaks before a crowd at UFCW Local 1167 Union Hall.

(Genaro Molina/Los Angeles Times)

Voters have more resources than ever should they choose to actually research and learn about who and what is poised to shape the future of their city, county and state.

There’s no shortage of broadcast, cable, digital and print reporting about former reality TV personality turned mayoral candidate Spencer Pratt. He uses AI!

The battle between incumbent Karen Bass and her closest Democratic competition, Los Angeles city council member Nithya Raman, dominates local newscasts. And there’s pundits from both sides arguing for and against these choices on every available platform.

Given the amount of information now at voter’s fingertips, we should be the most informed voting populace in the history of ballot casting. But are we?

A new poll by UC Berkeley’s Institute of Governmental Studies that was co-sponsored by the Los Angeles Times asked 8,578 registered voters across California what sources they rely on to get news and information about election-related issues. The poll, which was conducted online May 19-24 in English and Spanish, found that nearly half of the state’s electorate (47%) said they refer to the official voter information guide that is mailed to voters in advance of each election.

Discovering that a nonpartisan, non-sponsored source of data topped the list is a welcome surprise. Today’s media-verse is so fractured and bifurcated along political lines, I just assumed that confirmation bias would drive most folks toward friendly sources, i.e. what they want to hear.

Not as surprising is that 44% of those polled said they use Google or other search engines to seek out election-related information, and greater than 3 in 10 obtain election-related information from social media (39%). Traditional means of information weren’t far behind search engines. Those polled said they still rely on national or cable TV news (39%), newspapers, online or in print (37%), and local TV news (35%). One in three (33%) get information word-of-mouth from family, friends, neighbors or co-workers.

Gubernatorial candidate Tom Steyer, right, meets with supporters at a campaign stop.

Gubernatorial candidate and billionaire Tom Steyer, right, meets with supporters at a campaign stop.

(Sara Nevis/For The Times)

“The substantial differences in news sources across generation, education and partisanship suggest that we are a considerable distance from the information environment that dominated most of the 20th century, where local newspapers, network news and local television stations dominated,” said Professor Eric Schickler, co-director of the Institute of Governmental Studies. “This fragmentation means that voters may no longer share a common frame of reference when evaluating candidates and election issues.”

The increasingly splintered ways in which voters seek information, fueled by the rapid changes in technology and media, has kept political campaign strategists on their toes.

“Getting attention is the first barrier, and then once you have that attention, how do you convert that into support?” says Democratic campaign consultant and strategist Brian Brokaw. “You have to create a surround-sound effect in order to persuade the voter to go for your candidate or your issue, and they have to hear from multiple avenues. Voters are innately skeptical of advertising, especially when it’s a very direct sale from a candidate. That’s why you’re seeing the use of more influencers in campaigns, particularly paid influencers, who may or may not be disclosing that they are being paid. That’s been a prominent issue in the governor’s race.”

Age, or generational differences, are another deciding factor in where voters look for more intelligence on issues and candidates. The poll found that two-thirds of voters under the age of 30 (67%) and a majority of those ages 30-39 (52%) use social media such as Facebook, X, Instagram, or TikTok to get their information.

Getting to know a candidate, particularly via social media, isn’t necessarily part of a rigorous, fact finding mission. Laughing at Pratt’s Batman-themed video or Gov. Gavin Newsom’s satirical X posts are more about bonding with the person than unpacking their policies. Real or perceived, discovering a candidate via one’s Instagram feels more organic than seeing them on billboard or TV ad.

“One way that politics has changed is that people are craving authenticity. Someone like [Zohran] Mamdani, was very successful and promoted himself from the back of the pack to mayor of New York City. But what people are seeing doesn’t mean that’s the truth,” warns Republican consultant and campaign strategist Kevin Spillane. “I’ve been involved in politics for 40 years. A lot of people are not how they present themselves. But we still crave authenticity, we want to believe [in someone], we want that connection.”

We’ll soon see who Californians choose to represent them and their concerns — or which candidate waged the best campaign warfare, substantive political arguments be damned. But it may take a minute to count all the votes. California reached a record number of registered voters ahead of Tuesday’s primary election, according to the Secretary of State’s office. Officials say more than 23.1 million Californians are now registered to vote statewide.

West Coasters who want to understand what they’re voting for have infinite resources to turn to, some more useful than others. Sponsored mailers (the aforementioned mosquito swatters) only appealed to 9% of those polled as a useful source of information. But did you really need a poll to tell you that?

Source link

Contributor: Xavier Becerra shows that his loyalty lies with fossil fuels

In June 2017, with President Trump newly installed in office for the first time, one of the biggest battles with the administration was about oil. He’d just named the chief executive of Exxon Mobil, Rex Tillerson, as his secretary of State, even though great reporting — in this newspaper among others — had recently shown that the company knew all about, and lied all about, climate change as far back as the 1980s.

Back east, the attorneys general of New York and Massachusetts were trying to take the oil giant on, initiating investigations of the company to try to hold it accountable. Environmental advocates and consumer groups were pressing hard for California Atty. Gen. Kamala Harris to join in, and she seemed to be considering it. Then she left the office to assume her new U.S. Senate seat, and the decision fell to her replacement, Xavier Becerra — now a leading candidate for California governor.

As I wrote in these pages at the time, it was a great test for him, and a great curiosity that he was staying silent, “since the rest of Sacramento is hard at work dealing with climate change.” I was not the only one who noticed. Seventy thousand Californians signed petitions demanding action. Eight California representatives in Congress — including Jared Huffman and Ted Lieu — sent him a letter demanding a “vigorous” inquiry and pointing out that it was particularly important because the newly elected Trump administration was clearly favoring the oil industry. “California has led the world in responding to the dangers of climate change, and we know that it will continue to do so,” they wrote. “You now have a leading role in that effort.” But ultimately Becerra did not have a leading role, or indeed any role at all: He punted, as this editorial page pointed out. What Sen. Ted Cruz (R-Texas) is now trying to do by statuteimmunize the big oil companies from prosecution for climate liability — Becerra accomplished by sheer silence.

In the years since, of course, California has paid a huge price for our inaction on climate. Just looking at wildfire, there were of course the great blazes that Los Angeles County will never forget in 2025, but also the 2020 August Complex fire in Humboldt and Mendocino counties, the 2021 Dixie fire up north, the 2017 conflagration across Napa and Sonoma counties, the 2017 Thomas fire in Ventura and Santa Barbara counties, the 2018 Camp fire that devastated Paradise — the list goes sadly on and on and on.

Meanwhile, Big Oil and its friends at Big Utility have racked up huge profits, and Californians have faced ever higher bills. An unhobbled oil industry played a huge role in reelecting Trump in 2024 and in taking us to war with Iran.

And through it all, during his years as attorney general, Becerra did little or nothing to help. As I said all those years ago, it’s a mystery why, though I fear the mystery gets clearer with each campaign funding filing over his long career. As California’s top prosecutor, he took big donations from oil industry giants such as Chevron, and also from energy companies Sempra and Southern California Edison. As a member of Congress, he took larger checks from Pacific Gas and Electric and Edison International.

This time around, as he seeks the governor’s office, Chevron has maxed out its contributions to his campaign, the first time they’ve found a gubernatorial candidate to back in a decade. Meanwhile, across the country, leading progressives have signed a pledge refusing fossil fuel donations. Another gubernatorial contender, Katie Porter, is among them. Needless to say, Becerra is not.

The California chapters of Third Act — a group of Americans over 60 that I helped found — canvassed their members last month and issued an endorsement of Tom Steyer, on the grounds that he had worked hard over the years to address energy and climate issues. Instead of taking money from Big Oil, he’s given money, time and counsel to those of us volunteering in the fight against the industry. In fact, I think that whether one is most concerned about lowering utility bills with clean energy or protecting California’s forests, beaches and insurance rates from the global warming threat, he’d be the most climate-conscious elected official in America.

But Third Act was also founded to help protect our democracy. And that means disconnecting public policy from campaign donations. We need leaders who will do the right thing for us, not for their donors. Steyer has called on Becerra to return his donations from Big Oil. That would be a start, but it doesn’t really make up for the wasted decade we’ll never get back.

Bill McKibben is the founder of Third Act and the author, most recently, of “Here Comes the Sun: A Last Chance for the Climate, a Fresh Chance for Our Civilization.”

Source link

Legal battle to halt Nexstar-Tegna TV station merger expands with five new states

California Atty. Gen. Rob Bonta has enlisted new allies in his legal battle to unravel Nexstar Media Group’s takeover of rival television station group Tegna Inc.

Late Thursday, Bonta announced that five additional states have joined his coalition that is suing to block the $6.2-billion merger. With the additional plaintiffs, the group of top state law enforcement officers has grown to 13 — and the campaign now is a bipartisan effort.

“Antitrust enforcement is not political — it’s about protecting working families and helping ensure the benefits of a vibrant economy are for everyone, not just well-connected corporations,” Bonta said in a statement. “We welcome our sister states into the fray and look forward to fighting alongside them.”

The new states are Indiana, Kansas, Massachusetts, Pennsylvania and Vermont. They have joined existing the plaintiffs that represent the people of California, Colorado, Connecticut, Illinois, New York, North Carolina, Oregon and Virginia.

Nexstar owns KTLA-TV Channel 5 in Los Angeles.

U.S. District Judge Troy Nunley two weeks ago granted a request by the attorneys general to issue a preliminary injunction halting the merger as the legal case proceeds. The proposed merger — which Nexstar rushed to complete despite opposition from the states — would create the nation’s largest broadcast station group with 265 television stations, up from 164 that Nexstar currently controls.

In dozens of markets, including San Diego and Sacramento, Nexstar would own multiple major TV network affiliates. That duplication has raised concerns about staff consolidations and widespread newsroom layoffs.

“State attorneys general nationwide understand just how important robust antitrust enforcement is to American life — and what a rotten deal this is for consumers, for workers, for affordability, and for our local news,” Bonta said.

El Segundo-based DirecTV separately filed a lawsuit to block the deal, saying the Nexstar-Tegna consolidation would harm their business by forcing DirecTV to pay significantly higher fees for the rights to carry their stations as part of its programming lineup.

A Nexstar representative was not immediately available for comment.

Nexstar contends the deal would strengthen TV station economics, allowing stations to bolster their news gathering and expand the number of newscasts. But DirecTV countered that in markets where Nexstar owns two stations, it relies on just one newsroom to program both channels.

Nexstar’s proposed purchase of Tegna would give the Irving, Texas-based Nexstar stations in 44 states covering 80% of the U.S. population.

The federal judge ruled there was sufficient merit in the antitrust arguments brought by Bonta and the others to pause Nexstar’s takeover of Tegna until a trial can be held to decide whether the merger is illegal.

“Nexstar must permit Tegna to continue operating as a separate and distinct, independently managed business unit from Nexstar,” Nunley wrote in his 52-page order on April 17. “And Nexstar must put measures in place to maintain Tegna as an ongoing, economically viable, and active competitor.”

Source link