Newsom said he would prefer a resolution to the state’s antitrust lawsuit if the terms are favorable, as California weighs the deal’s potential impact on jobs and the state’s reputation.
- Paramount Skydance had secured regulatory clearance from 68 jurisdictions globally as of last week, says a Bloomberg report.
- Paramount CEO David Ellison has reportedly considered moving the company out of California, with headquarters staff potentially relocating as early as October 1.
- On Thursday, California Attorney General Rob Bonta said the group of states would need “robust structural remedies” to settle the antitrust case.
California Governor Gavin Newsom has reportedly said he would prefer a settlement of the state attorney general’s lawsuit opposing Paramount Skydance Corp.’s (PSKY) $110 billion acquisition of Warner Bros. Discovery Inc. (WBD) “if it’s a good deal.”
The comments come as California and a group of other states continue to oppose the deal.
PSKY stock ended Friday’s regular session nearly 0.60% higher and was up another 0.19% in after-hours trading at the time of writing. WBD shares ended Friday’s regular session 1.08% higher and extended the gains after-hours, trading 0.16% higher at the time of writing.
Gavin Newsom Wants A Resolution
Newsom said on Friday that the legal battle still needs to be worked through and that the process is ongoing, according to Bloomberg. Speaking at a press conference in San Francisco, he said he was concerned about California and its reputation.
The governor raised concerns last month about the state’s antitrust lawsuit. The Wall Street Journal reported at the time that Newsom had told people involved in the matter that blocking the transaction could hurt employment in the state. His office also encouraged California Attorney General Rob Bonta’s office to pursue a resolution.
Rob Bonta Seeks Remedies To Settle Case
The legal challenge is now the remaining obstacle to the deal after Paramount secured regulatory clearance from 68 jurisdictions worldwide as of last week.
California Attorney General Rob Bonta and the other states involved said that combining major film studios, news networks and streaming services could hurt film and television distribution and reduce jobs across the entertainment industry.
On Thursday, Bonta, while appearing on CNBC’s “Squawk on the Street,” said the group of states seeking to block Paramount Skydance’s proposed acquisition of Warner Bros. Discovery would require “robust structural remedies” to reach a settlement in the antitrust case.
Paramount Weighing California Exit?
Hanging over the legal battle is the risk that Paramount Chief Executive Officer David Ellison would move the company out of California. The company’s board has approved a potential relocation to another state as early as October 1, according to Bloomberg, citing a person familiar with the plans.
Ellison reportedly told senior executives last week that the relocation would initially involve headquarters staff. He is also developing a five-year plan that would move most of the film and television studio’s jobs to the new location, the person said.
PSKY, WBD Stocks: Stocktwits Sentiment
On Stocktwits, retail sentiment for PSKY remained ‘bullish,’ unchanged over the past 24 hours, while message volume was ‘low’ at the time of writing. For WBD, retail sentiment was ‘bullish,’ while message volume was ‘normal.’
PSKY stock has lost over 23% year-to-date, while WBD shares have declined around 0.85% during the same period.
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