California AG Rob Bonta says a CNN spin-off wouldn’t resolve Paramount–WBD lawsuit

California Attorney General Challenges Paramount-Warner Bros. Merger Amidst Spin-Off Speculation

California AG Rob Bonta says a CNN – Legal representatives for a coalition of twelve states attempting to halt the proposed merger between Paramount and Warner Bros. Discovery presented their case in court on Friday. Their central argument emphasized that a temporary restraining order remains essential to prevent the corporate giants from finalizing their combined deal. Judge Araceli Martínez-Olguín listened to both sides of the dispute, including Paramount’s counterarguments against implementing such a restraint. According to earlier CNN reporting, both parties anticipate the judge will issue this restraining order, which would effectively suspend the merger proceedings for approximately two weeks while legal matters are resolved. The judge indicated she would not deliver her decision on Friday but promised to issue her ruling regarding the temporary restraining order by Wednesday, July 22.

Before Friday’s proceedings commenced, I had the opportunity to speak with California Attorney General Rob Bonta, who is spearheading the coalition of Democratic state attorneys general opposing Paramount’s plans. Bonta expressed optimism that the court would grant the restraining order, though he conceded the process might require additional time. The conversation naturally turned toward the extensive media discussion surrounding CNN, the associated financial penalties, and suggestions that Paramount might relocate its operations out of California. Bonta characterized some of his adversaries as attempting to distort facts and generate unnecessary confusion. He maintained that their legal complaint remains unambiguous and clearly stated.

Current Legal Position and Settlement Prospects

When asked whether any discussions were occurring between his office and Paramount regarding a potential resolution, Bonta provided a definitive response. He emphasized that no negotiations are currently underway because the coalition is actively engaged in litigation. They have filed suit and requested both a temporary restraining order and a preliminary injunction with the goal of preventing the merger from proceeding. Bonta stated this represents their complete position. However, he left the door open for Paramount to present a genuine settlement proposal. Such an offer would need to incorporate structural changes rather than mere behavioral commitments. Bonta made clear that they are not interested in empty assurances or self-serving promises that lack enforceability and have historically proven unreliable.

“There are no negotiations. We are suing. We are in litigation. We have sued and sought a TRO and a preliminary injunction seeking to block the merger. That’s it. That’s full stop. That’s where we’re at.”

Why CNN Spin-Off Alone Falls Short

The media has extensively speculated about one particular structural remedy: divesting CNN from Paramount. When questioned whether offering only to sell CNN would be adequate to conclude the lawsuit, Bonta responded with emphatic certainty. He stated unequivocally that a CNN-only divestiture would not resolve the case, regardless of timing. He explained that such a remedy fails to adequately address the specific concerns outlined in their legal complaint. While figures like Brendan Carr and various news organizations have discussed this possibility, Bonta noted that he has never suggested it would be sufficient, nor does he believe it ever will be.

“A divestiture of CNN, a spinoff of CNN, a structural remedy that just applies to CNN will never, ever, ever, ever, ever resolve this case. It is not what we’re looking for. It’s not what we’re interested in. It doesn’t address our concerns.”

Bonta clarified that while the coalition would consider a broader structural package that includes CNN being separated, this remains secondary to their primary objectives. Their focus centers on three critical markets: the wide-release theatrical film sector, the blockbuster theatrical release arena, and the cable channel industry. He characterized Paramount’s emphasis on CNN as part of an aggressive public relations campaign designed to sway public opinion. Rather than accepting the straightforward antitrust analysis presented by the coalition, Bonta suggested Paramount is attempting to frame the situation as purely political—a Democrat attorney general seeking to liberate CNN from Ellison family influence. He dismissed this narrative as baseless, noting that such political motivations have no place in their actual legal complaint.

“But it’s part of this Paramount PR campaign that’s in overdrive. I think they’re trying to play to the court of public opinion. They’re suggesting that, instead of the very clear, clean antitrust analysis that we’ve done here — where I’m sure they’re on their heels because the merger in the three markets we identify is presumptively unlawful — they’re trying to say, ‘Hey, this is just political. This is a Democrat AG, and Democrat AGs just want CNN to be free of the influence of the Ellisons.’ And it’s ridiculous. I mean, that’s not part of our complaint. It’s not adjacent to our complaint. It’s not part of our complaint.”