The celebration surrounding the Department of Justice’s reported approval of the Paramount-Warner Bros. Discovery merger may have been short-lived.
Just hours after reports emerged that the DOJ had unconditionally approved the proposed $111 billion transaction, California Attorney General Rob Bonta publicly pushed back on the idea that the deal is effectively finished.
The merger of Warner Bros and Paramount is not a done deal and remains under investigation by my office,” Bonta wrote on X Friday evening.
The statement immediately raised questions about whether California could still derail the merger despite the federal government’s decision not to challenge it.
The answer is complicated.
What Bonta Actually Said
Bonta’s statement was brief but notable.
Following widespread reports that the DOJ had approved the merger without requiring divestitures, behavioral remedies, or other concessions, the California Attorney General reminded observers that his office’s investigation remains active.
The merger of Warner Bros and Paramount is not a done deal and remains under investigation by my office.
— Rob Bonta (@AGRobBonta) June 12, 2026
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The timing was significant.
Many observers had viewed the DOJ’s reported approval as the biggest remaining hurdle facing David Ellison’s effort to combine Paramount Skydance and Warner Bros. Discovery into a single entertainment giant.
Bonta’s statement served as a reminder that federal approval does not automatically end all regulatory scrutiny.
Does California Actually Have the Power to Stop the Merger?
The short answer is yes — at least in theory.
State attorneys general have authority to enforce both state antitrust laws and, in some circumstances, federal antitrust statutes. They can file lawsuits challenging mergers if they believe those transactions will harm competition within their state.
That does not necessarily mean Bonta can single-handedly block the merger.
Paramount Pictures Logo – YouTube, ClosingLogosHD
The DOJ’s reported decision to approve the transaction without conditions dramatically changes the landscape.
Any challenge brought by California would now be proceeding without support from federal antitrust regulators, who reportedly reviewed the transaction and concluded it did not pose a sufficient threat to competition to justify intervention.
That would not make a legal challenge impossible. It would just likely make it significantly more difficult.
Courts generally take notice when the nation’s primary antitrust enforcement agency conducts an extensive review and ultimately decides not to oppose a transaction.
Why the DOJ’s Unconditional Approval Matters
The most important word in the DOJ story may be “unconditional.”
Large mergers are frequently approved only after companies agree to sell assets, divest business units, accept operational restrictions, or comply with other remedies designed to address competition concerns.
According to reports, none of that happened here.
Warner Bros Discovery Logo
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The DOJ reportedly approved the Paramount-Warner Bros. Discovery transaction exactly as proposed.
That doesn’t legally prevent California from continuing its investigation. However, it does create a significant hurdle for merger opponents.
Federal regulators reportedly reviewed the same arguments being raised by critics of the deal — concerns about consolidation, competition, layoffs, and market power — and declined to require even a single concession.
For David Ellison and Paramount Skydance, that represents one of the strongest possible outcomes they could have hoped for.
Critics Continue to Oppose the Deal
Opposition to the merger remains substantial.
More than 5,500 filmmakers, actors, writers, and industry professionals signed an open letter urging regulators to stop the transaction.
Mark Ruffalo being interviewed by Jimmy Kimmel – Youtube, Jimmy Kimmel Live
Actor Mark Ruffalo became one of the most recognizable public faces of the anti-merger campaign, arguing that the deal would harm workers and further consolidate power within Hollywood.
Labor organizations including Teamsters affiliates and Writers Guild members have also raised concerns about potential layoffs and industry consolidation.
Bonta’s comments suggest those opponents are not yet ready to concede defeat.
A Different Standard Than Disney-Fox?
One question likely to be raised by merger supporters is why California appears willing to continue scrutinizing this transaction when the state’s attorney general’s office did not challenge Disney’s acquisition of 21st Century Fox in 2018.
That deal dramatically reshaped Hollywood by placing a massive collection of film, television, and entertainment assets under Disney’s control.
Bob Iger via CNBC Television YouTube
At the time, California Attorney General Xavier Becerra’s office did not attempt to independently block the transaction.
Supporters of the Paramount-Warner Bros. merger may argue that the state is applying a different standard now than it did during one of the largest entertainment mergers in modern history.
The Merger Is Closer, But Not Finished
Bonta is correct about one thing: The merger is not yet complete.
Major transactions of this size still require numerous closing steps, regulatory reviews, and operational preparations before they become final.
David Ellison in an interview with Bloomberg – YouTube, Bloomberg Podcasts
But the DOJ’s reported unconditional approval remains a massive victory for David Ellison and Paramount Skydance.
The California Attorney General may still be investigating.
The question now is whether that investigation will ultimately amount to anything more than a speed bump on the road to one of the largest media mergers in entertainment history.
Do you think the Paramount Warner Bros. merger will go through? Sound off in the comments and let us know!
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