California Governor Gavin Newsom has expressed concern over the potential negative impact on the state's entertainment industry and employment from a multi-state antitrust lawsuit challenging the acquisition of Warner Bros. Discovery by Paramount. He has advised state judicial authorities to push for an out-of-court settlement between the parties.

According to informed sources, Paramount plans to acquire Warner Bros. Discovery for $111 billion. Newsom believes that if the deal is blocked by legal action, it could severely hit the job market in California's related industries. To this end, the Governor's office has reached out to California Attorney General Rob Bonta, who holds independent litigation authority, suggesting a resolution outside of court.

Earlier, California, along with attorneys general from New York, Washington, and nine other states, filed an antitrust lawsuit on July 13 to block the merger of the two Hollywood studios. The plaintiffs argue that the merger would further drive up movie ticket prices, reduce the number of films released in theaters, and diminish the quality and diversity of film content.

California Attorney General Bonta has emphasized that the merger would undermine market competition and harm the healthy development of the industry. In response to the lawsuit, the U.S. Federal District Court issued a temporary restraining order in late July, halting the merger process. Paramount subsequently submitted court documents, pledging not to complete the acquisition until the court reaches a verdict or until June 2027.

As of now, neither the Governor's office nor the Attorney General's office has commented on the reports.