Newsom denies pressuring California AG in Paramount settlement

Gov. Gavin Newsom of California denied Wednesday that he pressured Attorney General Rob Bonta to settle an antitrust lawsuit with Paramount Skydance Corp. ahead of the company's proposed merger with Warner Bros. Discovery Inc. The denial follows a settlement announced by Paramount on Monday, which allows the $111 billion deal to proceed after originally being expected to close during the third quarter of this year.

Newsom stated that he did not pressure anyone but rather emphasized a public preference for resolving the matter in a boardroom rather than a courtroom. He noted that this position was shared by several officials, including Bonta and soon-to-be governor-elect Xavier Becerra. Newsom said that when Bonta articulated this approach on CNBC, state officials amplified the message as a better framework for California.

Bonta confirmed the settlement during a Monday press conference but clarified that it does not constitute support for the merger itself. He described the resolution as an outcome of good-faith negotiations aimed at protecting competition and consumers, stating that he preferred to resolve the issue outside of court. The settlement paves the way for the merger to continue, a development that has drawn sharp criticism from various political figures.

Joseph Vazquez, a business associate editor at the Media Research Center, told Fox News Digital that the settlement reflects a shift away from what he described as left-wing virtue signaling toward economic reality. Vazquez argued that Newsom and Bonta faced political risks in allowing a major media company to potentially move its headquarters out of California to a more business-friendly state like Tennessee or Texas. He suggested that Democrats were concerned about being perceived as hostile to business during the midterm election season.

Conversely, Sen. Elizabeth Warren of Massachusetts condemned the settlement on Monday, calling it a disastrous outcome that allows a Trump-aligned, foreign-owned conglomerate to dominate American news and entertainment. Warren criticized the Trump administration's antitrust review process for waving through what she termed a blatantly illegal merger. She warned that the new Paramount entity would result in higher prices and fewer jobs, enabling billionaires to control American media. Warren stated that corporate executives often offer unenforceable promises to close deals, leaving workers and consumers to pay the price, and identified the merged company as a candidate for future antitrust scrutiny.

Fox News Digital reached out to the offices of Newsom and Bonta for comment but did not immediately receive a response.