California AG Warns Paramount-Warner Bros. Deal Not 'Done Deal'

Attorney General Rob Bonta vows 'vigorous' review of proposed acquisition amid concerns over market concentration.

Published on Feb. 27, 2026

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California Attorney General Rob Bonta has warned Paramount Skydance and Warner Bros. Discovery that their proposed acquisition deal is not a 'done deal' and that the state's Department of Justice will conduct a 'vigorous' review of the transaction. Bonta's statement comes amid concerns from a coalition of Republican state attorneys general about the deal leading to 'undue market concentration' and higher prices for consumers.

Why it matters

The proposed acquisition of Warner Bros. Discovery by Paramount Skydance would combine two major Hollywood studios, raising antitrust concerns about market dominance and the potential impact on consumers, the theater business, and innovation in the industry.

The details

Bonta's warning came after Paramount Skydance raised its bid price to acquire Warner Bros. Discovery, leading the WBD board to accept the offer. Netflix, which had previously agreed to acquire WBD, withdrew from the deal, saying it was 'no longer financially attractive' with the increased price tag. Bonta had already put Netflix and WBD on notice that California would closely scrutinize the consolidation of a legacy studio with the dominant streaming platform.

  • On Tuesday, before Netflix pulled out, a coalition of 11 Republican state attorneys general urged the Department of Justice to carefully review the Netflix-Warners deal.
  • On Thursday evening, California Attorney General Rob Bonta issued a statement warning Paramount Skydance and Warner Bros. Discovery that their acquisition deal is 'not a done deal'.

The players

Rob Bonta

The Attorney General of California who has vowed to conduct a 'vigorous' review of the proposed Paramount Skydance-Warner Bros. Discovery acquisition.

Paramount Skydance

The media company that has proposed acquiring Warner Bros. Discovery in a deal that is now facing scrutiny from California's attorney general.

Warner Bros. Discovery

The media conglomerate that had previously agreed to be acquired by Netflix, but is now poised to be acquired by Paramount Skydance instead.

Netflix

The streaming giant that had previously agreed to acquire Warner Bros. Discovery, but withdrew from the deal, citing the increased price tag.

Department of Justice

The federal agency that will likely scrutinize the proposed Paramount Skydance-Warner Bros. Discovery acquisition for potential antitrust concerns.

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What’s next

The California Department of Justice will conduct a 'vigorous' review of the proposed Paramount Skydance-Warner Bros. Discovery acquisition, and the Department of Justice at the federal level is also expected to closely scrutinize the deal for potential antitrust concerns.

The takeaway

The proposed consolidation of major Hollywood studios and streaming platforms is facing increasing regulatory scrutiny, with California's attorney general warning that the Paramount Skydance-Warner Bros. Discovery deal is 'not a done deal' and vowing to thoroughly review the transaction for its potential impact on competition and consumers.