LOS ANGELES — Paramount Pictures has privately signaled it may pull significant operations from California unless state regulators reach a deal that would let its proposed merger with Warner Bros. close, according to people familiar with the discussions.
The studio has offered a set of legally binding commitments — including production targets, fixed theatrical and streaming windows and assurances to keep major lots open in California — as part of a proposed consent decree, sources said. Paramount’s appeals to state Attorney General Rob Bonta have, the sources said, gone unanswered or been rebuffed, leaving studio executives frustrated and worried about an increasingly “inhospitable” regulatory environment.
What Paramount is offering
Paramount has proposed specific operational guarantees intended to anchor production in California and address antitrust concerns. Those proposals, according to people with direct knowledge of the talks, include:
- 30 feature films per year produced by the combined company.
- 45-day theatrical release window for films before streaming availability.
- 90-day streaming window commitments for certain releases.
- Promises to keep both Paramount and Warner Bros. studio lots open in California.
Paramount executives also point to the broader economic footprint they say the merger would generate, estimating content spending and employment flows that could benefit the state. The source material cites roughly $30 billion in content spending annually associated with the companies, a figure Paramount executives referenced when urging engagement from state officials.
| Commitment | Detail |
|---|---|
| Annual film production | 30 films |
| Theatrical window | 45 days |
| Streaming window | 90 days |
| Content spending | $30 billion annually (as cited by studio sources) |
State response and studio stance
Attorney General Rob Bonta has publicly signaled caution about the merger, telling MSNOW that he sees “red flags in the air everywhere” and is “concerned about job loss and prices being increased,” according to people familiar with his remarks.
“We continue to engage constructively with the remaining few regulators around the world still considering the merger, including State Attorneys General, and are prepared to address any legitimate antitrust issues,” Paramount said in a statement.
In private discussions, studio leaders including Paramount’s executives have described the attorney general’s office as unresponsive to their proposals. An adviser to Paramount told reporters the combination of potential legal action and perceived hostility from state officials could push the company to relocate significant operations.
Local impact, and what’s at stake
California has already seen production migrate to other states and Canada in recent years, costing thousands of entertainment jobs, according to industry accounts cited by studio executives. Paramount argues that the merger would increase local employment and production spending and help reverse that outflow.
For Californians working in film and television — from crews and technicians to post-production facilities and local vendors — the outcome could shape employment prospects and where large-scale film shoots take place. If the attorney general moves to block the merger or presses unresolved legal challenges, Paramount officials say the studio may reconsider its footprint here.
Paramount framed its public messaging around cooperation with regulators worldwide and confidence that the transaction raises no antitrust concerns, noting multiple global authorities have reviewed the deal.
The attorney general’s office did not respond to a request for comment on the specifics of Paramount’s proposals or on whether continued discussions are planned.
As talks proceed, industry stakeholders and local officials will be watching how California’s regulatory approach balances antitrust scrutiny with the risk of driving more production and jobs out of state.
