California AG says Paramount's Netflix defense misses the point

California Attorney General Rob Bonta filed a lawsuit to block Paramount’s acquisition of WBD, arguing the deal should be stopped under antitrust grounds. He dismissed the counterpoint that Netflix and other streaming competitors offset the competitive harm. The action raises meaningful deal-execution and regulatory risk, which is likely to weigh on relevant media M&A expectations.

Analysis

California Attorney General Rob Bonta filed a lawsuit to block Paramount’s acquisition of WBD, arguing the deal should be stopped under antitrust grounds. He dismissed the counterpoint that Netflix and other streaming competitors offset the competitive harm. The action raises meaningful deal-execution and regulatory risk, which is likely to weigh on relevant media M&A expectations.