From California Post · · 1m 30s
California's gamble with Paramount could cost 58,000 jobs
Attorney General Rob Bonta's antitrust lawsuit against Paramount risks driving the studio out of state, threatening Hollywood's future.
In brief
Attorney General Rob Bonta's antitrust lawsuit against Paramount risks driving the studio out of state, threatening Hollywood's future. Blocking the Paramount-Skydance merger could accelerate California's loss of entertainment industry jobs and investment. Originally reported by California Post.
Paramount threatens to leave California
The studio says it will relocate if Attorney General Rob Bonta and other state attorneys general don't drop their antitrust lawsuit blocking the Paramount-Skydance merger with Warner Bros. Discovery.
The economic cost is staggering
Losing Paramount would cost California $21 billion and nearly 58,000 jobs, according to the LA County Economic Development Corporation's Institute for Applied Economics.
Hollywood is already hemorrhaging jobs
The entertainment industry has already lost over 40,000 jobs, representing 30% of its peak workforce, in just the last few years. Another major studio departure would signal LA is no longer the entertainment capital.
Bonta's track record on mergers
Bonta backed California's lawsuit against JetBlue and Spirit's merger in 2024, claiming it would protect consumers. Spirit failed anyway, and airline passengers now have fewer choices.
Politics may be driving the lawsuit
Democrats are reportedly upset that CNN might become less left-leaning under new ownership, as with Paramount's CBS News. The lawsuit may reflect partisan concerns rather than genuine consumer protection.
California must make a deal
A judge ordered the state to sit down with Paramount for two days of talks next month. Bonta must set politics aside and negotiate a settlement to protect California's entertainment industry.
The bottom line
Blocking the Paramount-Skydance merger could accelerate California's loss of entertainment industry jobs and investment.
