spar

Paramount, state attorneys general spar over antitrust trial date

Paramount Skydance Chairman David Ellison and California Atty. Gen. Rob Bonta are clashing again — this time over when the antitrust trial to determine whether Paramount can complete its nearly $111-billion takeover of Warner Bros. Discovery should begin.

In court documents Friday, Bonta and his coalition of 11 other Democrat attorneys general proposed a two- to three- week trial beginning April 5, 2027.

Ellison’s Paramount pushed back, saying the media company would like to start the courtroom action on Nov. 4.

“Our request for a November trial date is more than sufficient to give both sides the time they need to conduct discovery, gather evidence, and prepare for trial,” Paramount said in a statement that called the state attorneys general request for a springtime trial “nothing more than a stonewalling tactic.”

U.S. District Judge Araceli Martínez-Olguín, who is overseeing the high-profile case, now must pick the date.

For Paramount, the issue is hugely important.

Ellison wants to wrap up the massive Hollywood deal — bringing CNN, HBO and the Warner Bros. film and television studios under Paramount — as soon as possible. Doing so is crucial to holding together Paramount’s coalition of financiers and controlling its rising expenses, primarily legal fees and escalating obligations to Warner shareholders.

Early this year, Paramount agreed to pay Warner investors a so-called ticking fee of $.25 per share per quarter, beginning Oct. 1. The overture was aimed at winning over investors during a bidding war with Netflix. Paramount agreed to pay Warner shareholders at least $31 a share.

Those ticking fees would increase the cost by $650 million every quarter or $7 million a day. For Paramount, finalizing the transaction by year’s end would eliminate such payments in 2027.

Warner shares gained 3.3% Friday to $26.30 — well below the deal price. Paramount stock is down nearly 40% since early January; it ended the trading week at $7.96.

For the states — which have been joined in the antitrust litigation by the Writers Guild of America — setting the trial for next spring would bring advantages.

They would have more time to prepare their case while also gaining leverage over Paramount, should the two sides seek to resolve the issue out of court.

With the clock ticking, Paramount might be more willing to compromise to reach a settlement, including selling some of its hoped-for assets.

“Plaintiff States propose a fast-paced but realistic schedule that moves this case rapidly to trial while ensuring sufficient time for discovery and pretrial preparation,” the states said in the latest court documents. “A shorter timeline would be artificially compressed and risks depriving this Court of a full record on which to decide this $110 billion case.”

Paramount also faces a potential $7-billion payment to Warner Bros. should the merger collapse by next summer. Paramount is the smallest of the major media companies and acquiring Warner Bros. is key to Ellison’s ambitions to build a new Hollywood colossus.

The state attorneys general, including from Colorado, Oregon, New York, New Jersey and Nevada, have argued that the blockbuster merger — the largest in Hollywood in decades — would violate the Clayton Antitrust Act, which has been on the books for more than a century.

If the deal goes forward, just four companies — a post-merger Paramount-Warner, Disney, NBCUniversal and Sony Pictures — would control 86% of movies that are widely released (in more than 3,000 movie theaters), according to the attorneys general lawsuit.

Paramount-Warner Bros. would also own more than 50 cable channels, including CNN, TBS, HGTV, Animal Planet and Comedy Central, in addition to HBO.

The Wall Street Journal reported Friday that Gov. Gavin Newsom was not eager for a trial to take place.

Newsom has not publicly favored either side. Sources have previously told The Times that both sides have been lobbying the governor to win his support.

A Newsom spokesperson declined to discuss the Journal article, saying: “Our office doesn’t comment on anonymous sources or unverified reporting.”

Bonta — not Newsom — is leading the case.

Both hold statewide office; Bonta is running for reelection this year and Newsom is widely expected to run for president in 2028.

Paramount last week agreed to delay its acquisition amid concerns that it was poised to lose an important motion for a preliminary injunction — which would have rattled investors — and scuttled the deal until a trial could be held.

On Friday, Paramount said further delays “harm the many individuals outside this courtroom who will be denied the expanded content offerings and industry stability that a combined Paramount-WBD promises to bring.”

For his part, Bonta has said he was “eager” to move forward to a trial.

“Our challenge to the unlawful Warner Bros./Paramount merger is a clean-cut antitrust challenge through and through: it’s about protecting the vibrancy of an industry, the pockets of consumers, and the quality of films and television programs that take center stage in many of our lives,” Bonta said in a statement. “This challenge deserves careful and thorough review.”

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Becerra, Hilton spar over electoral integrity as Trump alleges cheating

As President Trump pushed unfounded allegations that California’s elections are rigged, the security of the ballot box became a major flash point in the state’s 2026 race for governor on Tuesday.

Republican Steve Hilton called for major reforms to how Californians cast ballots and how their votes are tallied, while sidestepping questions about the president’s claims that the state’s elections officials “were cheating.” Democrat Xavier Becerra defended the integrity of the state’s elections and argued that proposed restrictions would disenfranchise many voters.

The men appeared less than 20 miles apart in Southern California one week after a contentious primary election that prompted Trump to repeatedly make unfounded claims about the integrity of California’s slow vote-counting process, allegations triggered as Democrat Nithya Raman was about to overtake Republican Spencer Pratt for second place in the race for Los Angeles mayor.

Hilton, whose endorsement from Trump pushed him to the front of the GOP gubernatorial field, said he has not seen any evidence of impropriety in this month’s election results.

“We’re very, very focused on making sure that everything’s OK,” Hilton told reporters in Norwalk. “We’ve got teams standing by, we’ve got lawyers standing by, very focused on that. We don’t want to let anyone down, we don’t want to let anything slip away, and we’ve seen nothing.”

The two men emerged from a crowded field of candidates in the most unpredictable governor’s race in more than a quarter of a century. While Becerra on Friday nabbed a spot in the June 2 primary and will advance to the November general election, Hilton has not officially been declared a victor by the Associated Press, as of Tuesday afternoon.

Hilton, however, appears on the cusp of clinching the second spot on the ballot. Billionaire Democrat Tom Steyer is in third place in the current ballot tally, and the odds of him overtaking Hilton appear increasingly unlikely.

“I’m very pleased to say that we remain confident that I will make it into the top two and that California will have a real choice for change in November,” Hilton said at a news conference outside the Los Angeles County elections headquarters. “We’re not popping the champagne yet, but we’re very confident.”

Hilton called for electoral reform, including supporting a voter identification requirement that will appear on the November ballot, ending mail ballots being sent to every registered voter, no longer counting ballots that are received after election day — all of which are being pushed by Trump — and increasing resources at county vote counting centers.

“Voter ID [is] not the only thing, but it’s the biggest, quickest, simplest thing we can do to restore faith in the system and to have these elections completed quickly in a way that inspires confidence, and that’s why I hope that Xavier Becerra will join me in campaigning for it, so we can have a united front,” the former Fox News commentator and British political strategist told reporters.

Hilton did not directly address Trump’s unfounded claims of voter fraud in California. However, he noted that Bill Essayli, the first assistant U.S. attorney for the Central District of California, has the full resources of the Department of Justice and has found no proof of wrongdoing.

Essayli said Monday on NewsNation that his office is investigating voter fraud but doesn’t have a case. However, the voter rolls need to be audited, Essayli told host Chris Cuomo.

“That, to me, is the best way to alleviate most of people’s suspicion. We have a system that breeds skepticism and distrust,” Essayli said. “We should have a little transparency and confidence in our system.”

Becerra, a longtime elected official and a former Biden administration Cabinet secretary, questioned whether Hilton could be trusted to protect the state against Trump’s fraud claims.

“That’s who’s endorsing Steve Hilton,” Becerra told reporters at a South Los Angeles food hall, referring to Trump. “That’s who Steve Hilton is aligning himself with.”

Becerra, who was met with cheers of “Si se puede!” from diners, criticized the proposed voter ID ballot measure, arguing that it would create hurdles for many Californians to participate in the democratic electoral process. Led by Republican Assemblymember Carl DeMaio from San Diego and others, the measure would require elections officials to verify that voters are U.S. citizens to be eligible to cast ballots.

“I’m against voter suppression. I’m against anything that would try to limit a Californian’s right to vote,” said Becerra, who formerly served as California’s attorney general.

Told by reporters that Hilton wanted Becerra to campaign for the ballot initiative, Becerra responded, “Come join me here, where the real people are,” gesturing toward the packed food hall.

Becerra acknowledged his concern over the lengthy time that it takes to count votes in California. He suggested one issue is a lack of workers and equipment at county vote-counting centers.

Another problem is that the “votes get backlogged” because so many people wait until the end of the election to cast ballots, he said, likening last-minute voters to shoppers who go to Costco at the end of the day.

“If you wait till 7:00 p.m. when they’re getting ready to close, you’re probably gonna find more people there,” Becerra said.

The attacks on the elections process by Trump and his supporters appear to have a major effect on people’s confidence in the system. For years, Trump has made baseless claims that the 2020 election was stolen from him, which led his supporters to storm the U.S. Capitol as lawmakers were scheduled to certify the election results. Additionally, Trump’s allegations about California’s elections, as well as an upcoming U.S. Supreme Court ruling about ballot tallying, could have a significant effect on the midterm elections that will decide which party controls Congress for the final two years of Trump’s presidency.

A poll released Friday by the Institute of Governmental Studies at UC Berkeley found that 41% of California voters were “not confident” that this year’s elections would be free of federal interference. Although 48% had confidence that there would be no meddling, the concerns expressed were still significant, said political scientist Eric Schickler, co-director of the institute.

Among Democratic registered voters, 79% said they trusted elections officials to provide an accurate vote count. Among Republicans, 55% said they were not confident that would occur, the survey found.

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