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In three weeks, the shareholders of Warner Bros. Discovery will vote on whether to accept a $110 billion acquisition deal from media mogul David Ellison. He's the son of one of the richest men in the world and controls Paramount Skydance. The merger still needs to get past federal and international regulators. NPR's Mandalit del Barco reports that many in California, where Hollywood was born, are challenging the deal.
MANDALIT DEL BARCO, BYLINE: Here's what California Attorney General Rob Bonta has to say about the proposed consolidation of two historic Hollywood studios and all their assets.
ROB BONTA: Any Warner Bros.-Paramount merger is not a done deal.
DEL BARCO: Bonta told NPR that for an antitrust review, he's been collecting information about how the merger could harm consumers and people working in the film and TV industry. Bonta says he doesn't trust the federal government to do a fair investigation.
BONTA: Maybe they will be fair, be objective, be vigorous, do the job the federal government has long done. But I'm not holding my breath.
DEL BARCO: Bonta says he's highly skeptical because of the close relationship the DOJ and the Ellison family have with President Trump. He notes that after Trump endorsed a merger of rival television station owners Nexstar and Tegna, federal regulators quickly approved the deal. And Bonta points to remarks by Defense Secretary Pete Hegseth about CNN, the cable network owned by Warner Bros. Discovery that Trump has also repeatedly disparaged. Here's Hegseth at a press conference last month.
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PETE HEGSETH: The sooner David Ellison takes over that network, the better.
DEL BARCO: Bonta says California could possibly challenge the Warner Bros.-Paramount merger in court with a temporary restraining order or a lawsuit.
BONTA: This particular administration seems much less interested, and even worse, sometimes picking winners and losers based on friends or how they might benefit, as opposed to what the objective, straightforward, let-the-chips-fall-where-they-may antitrust analysis takes them.
DEL BARCO: NPR reached out to the DOJ for comment but did not get a response. Meanwhile, some big names in Hollywood are speaking out. Actress Jane Fonda has been leading the fight after relaunching the Committee for the First Amendment. Here she is in an Instagram video.
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JANE FONDA: I've been trying to find evidence that a Warner Bros. merger might be good, you know, for industry, for consumers, for democracy, something. I can't find anything. The idea of the whole entertainment industry being run by one company, that doesn't seem good.
DEL BARCO: Another group called BlockTheMerger has been collecting stories of people working in the entertainment industry, including independent filmmakers.
JAX DELUCA: When big media companies merge, there are fewer stories that are able to be made and fewer voices and perspectives that are represented.
DEL BARCO: Jax Deluca is interim executive director of the Future Film Coalition, which is leading the campaign.
DELUCA: People think that this merger would only affect Hollywood, but in fact, it's something that actually affects the whole chain of workers.
DEL BARCO: Deluca says BlockTheMerger is gathering evidence to bolster efforts by Senator Adam Schiff, who represents California. He's also called for more scrutiny of the Warner Bros.-Paramount deal, and last week, he held a hearing in Burbank with film and TV industry leaders. Among those giving testimony was actor Noah Wyle, who writes, directs and stars in the TV medical drama "The Pitt."
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NOAH WYLE: It comes at the cost of labor usually. These consolidations are really great for shareholders and not usually great for the labor force.
DEL BARCO: David Ellison sent a letter to Schiff saying his plan for Warner Bros. would preserve and expand jobs. He pledged that Paramount Studios and Warner Bros. Studios would each produce 15 feature films a year. He also affirmed he would preserve HBO, which is currently part of Warner Bros. In the deal, Ellison would also control CNN. With Skydance, he already runs CBS. And according to financial filings, his father's company, Oracle, is lead investor in U.S. operations of TikTok.
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DAVID ELLISON: It would be an unprecedented consolidation of media and programming.
DEL BARCO: During the hearing, Schiff said he's skeptical of Ellison's promises.
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ADAM SCHIFF: What workers need, what we will continue pushing for are enforceable specific commitments, backed by actions that can be measured and held to account. And what consumers need are lower prices, not increased fees to make the merger pencil out for shareholders.
DEL BARCO: While the Warner Bros./Paramount deal gets sorted out, Schiff is also pushing for a federal film tax credit to support more movies getting made in this country, rather than in less expensive locations and soundstages abroad. Mandalit del Barco, NPR News.
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