After weeks of speculation about Gavin Newsom‘s true position on Paramount‘s $111 billion acquisition of Warner Bros Discovery and the antitrust suit filed a coalition of state attorneys general, the outgoing governor of California finally weighed in publicly today.
His comments come as it appears that Paramount representatives and state attorneys general offices are said to be meeting face to face on Monday, Deadline has confirmed. However, the depth and scope of the August 24 meeting is unclear, sources tell us. “This is mandated under the mediation procedure,” an insider told Deadline on Friday.
Earlier this week, a status conference hearing before Judge Araceli Martinez-Olguin determined future dates in the contentious proceedings and stipulated that the parties engage in mediation before a magistrate judge — as is common in the federal system for cases like this.
As leaks have poured out of the Melrose lot of late that CEO David Ellison is considering decamping his company to a red state if the suit isn’t settled, potential 2028 POTUS contender Newsom said he takes the Golden State exit threat “seriously.”
“We’re hoping that doesn’t happen,” Newsom said Friday of Paramount potentially relocating to Tennessee, Texas or Georgia. “And I’m of the belief they don’t want that to happen. It’s not, I don’t think, in the company’s long-term interest, but I take it seriously.
“I’m concerned about the state, our reputation,” the two-term Democrat added at an event today.
California Gov. Gavin Newsom
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Reports have emerged during the past month that Newsom would like to see a settlement deal struck between the AGs and defendants Paramount and Warner Bros rather than the whole affair heading to trial. The governor’s office has neither confirmed nor denied Newsom’s POV, but until today he was one of the few voices silent on the merger and the lawsuits.
With Paramount attempting to achieve a court order for a $1.88 billion bond and a looming $7 million-a-day ticking-fee deadline, a trial has been set for March 2 in federal court in Oakland.
As well as addressing Paramount’s purported temper tantrum about an exodus from California, Newsom today also offered some guidance on his thoughts about the lawsuit fronted in some ways by California Attorney General Rob Bonta.
Echoing Bonta’s words that the whole matter could be settled in the boardroom not the courtroom, the governor added: “I think there’s some universal settlement there, if that’s possible. The question is [whether] that’s possible and what’s the best deal … that has to be worked through.”
California Attorney General Rob Bonta left, Paramount CEO David Ellison
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To that, the media-savvy Newsom threw out a bit of a gold nugget — or firecracker, depending on your perspective — to all concerned.
“I know there are many meetings that are going on, and there’s a lot of conversation,” Newsom said, seeming to indicate the semi-secret settlement talks between ParaBros and the AGs.
While everyone under the California sun, including Democratic gubernatorial candidate Xavier Becerra, incumbent L.A. Mayor Karen Bass, IATSE, the DGA and many more have joined the Paramount chorus advocating for settlement talks, Bonta has been keeping his powder dry and clearly weighing his options. Blasting Paramount’s threats to leave the state as “blackmail,” Bonta has appeared set on taking the whole thing to trial next year.
Now, with Newsom’s claims of talks happening in “real time” — though the governor was vague as to what that actually means — tactics and strategy on both side seem to be up in the air, both politically and legally.
RELATED: Could Cable TV, That Vestige Of Bygone Media Glory, Undo The Paramount-WBD Merger?
AG Bonta’s office did not respond to Deadline’s request for comment on Newsom’s remark, and Paramount had no comment on what the governor said, though execs at the latter more than likely are doing a happy dance over there right now.
With all of that and all the twists and turns this battle of corporate and political (yes, we see you CNN) will, at this point on a Friday, all we can say is stay tuned.
Erik Pedersen contributed to this report.