The ongoing conflict between California Attorney General Rob Bonta and Paramount Skydance CEO David Ellison over a proposed merger with Warner Bros. is intensifying. This week, both parties will engage in a court-ordered mediation session, though a resolution seems uncertain. Differences remain regarding business concessions required to resolve the antitrust lawsuit that stalled Ellison’s $111 billion takeover attempt.
The contention has worsened, with Paramount threatening to relocate out of California. The company accused actor Mark Ruffalo of using ‘antisemitic tropes’ to oppose the deal, attracting support from leading Jewish organizations like the Simon Wiesenthal Center and the Anti-Defamation League.
Ruffalo, known for his political activism, described the ongoing conflict in Gaza as ‘genocide’ fueled by Oracle’s technology. In a statement, Paramount criticized his choice of words, considering them misplaced within the context of a corporate transaction.
The disagreement escalated when Ruffalo highlighted support for Israel by Larry Ellison, David’s father, and Oracle’s involvement with the Israeli military. Paramount condemned Ruffalo’s remarks, while Ruffalo defended his stance, arguing that critiquing military contracts is distinct from antisemitism.
Mark Goldfeder, head of the National Jewish Advocacy Center, criticized Bonta, suggesting the lawsuit aligns with Ruffalo’s opinions. In response, Bonta, along with 11 other Democratic attorneys general, initiated the antitrust suit.
Governor Gavin Newsom and Mayor Karen Bass have urged for a settlement to prevent Paramount’s potential departure from California, which could result in a significant job loss. A report estimates that 4,500 jobs in Los Angeles could be affected.
Despite growing pressures, Bonta maintains that the dispute centers on antitrust laws, not political motives. To allow the merger, Bonta insists Paramount must divest certain assets, considering Ellison’s pledge to produce 30 films annually insufficient post-merger.
In retaliation, Paramount demanded a $1.88 billion bond from Bonta and other states if the trial extends to March, as the firm faces increased payments to Warner shareholders, known as ‘ticking fees,’ until the merger completes.
Bonta expressed a preference for resolving disputes amicably, despite Xavier Becerra, the Democratic nominee for governor, advocating for a settlement. The mediation process remains a critical stage in the legal proceedings.