After weeks of speculation about Gavin Newsom's position on Warner Bros Discovery's acquisition for 111 billion dollars and the antitrust lawsuit filed by a coalition of state attorneys general, California's outgoing governor finally spoke publicly on Friday.
Newsom said he takes seriously CEO David Ellison's threat to move the company to a Republican state if the lawsuit is not resolved. "We hope that doesn't happen," Newsom said about Paramount's possible relocation to Tennessee, Texas or Georgia. "And I think they don't want it to happen either. I don't think it's in the company's long-term interest, but I take it seriously." The two-term Democrat added that he is concerned about the state's "reputation".
Reports from recent months indicate that Newsom favours a settlement between the attorneys general and Paramount and Warner Bros over going to trial. A trial has been set for 2 March in federal court in Oakland, with a timeline of 7 million dollars per day in penalties.
Newsom also echoed the words of California Attorney General Rob Bonta about the possibility of resolving the matter in the boardroom. "I think there's some universal agreement possible, if that's possible. The question is whether it's possible and what the best agreement is... that has to be resolved," Newsom said. The governor indicated there are "many ongoing meetings" and "a lot of conversation," suggesting settlement negotiations in "real time" between the parties.
Bonta's office did not respond to requests for comment on Newsom's statements. Paramount also made no comment, although it is reported that Paramount representatives and state attorneys general offices will meet face to face on Monday.
