Filipino American California Attorney General Rob Bonta is leading a multistate challenge to Paramount’s proposed $110 billion acquisition of Warner Bros. Discovery as the company considers moving CBS News out of New York City, according to the New York Post.
Paramount is weighing whether to relocate its news operations as it seeks leverage in its legal dispute with Bonta and New York Attorney General Letitia James, the Post reported, citing people close to the company.
Paramount CEO David Ellison would prefer not to relocate CBS News, but the company has held broad internal discussions about a possible move to another city, a source with knowledge of the matter told the Post. The report said the discussions remain contingency planning, and Paramount has not announced a decision.
CBS News has about 1,200 employees worldwide, including employees in New York, according to a network spokesperson quoted by the Post. The report said Atlanta, where CNN is based, has been discussed as a possible destination for Paramount’s news operations.
The prospect comes as Bonta leads a coalition of 12 attorneys general challenging the proposed merger under federal antitrust law. The coalition includes California, Arizona, Colorado, Connecticut, Massachusetts, Minnesota, Nevada, New Jersey, New Mexico, New York, Oregon and Washington.
The lawsuit argues that combining Paramount and Warner Bros. would reduce competition in wide-release theatrical film distribution, anticipated top-grossing theatrical films and the licensing of basic cable television channels.
In its complaint, the coalition said the combined company would control about 27% of wide-release theatrical film distribution and about 27% of the market for licensing basic cable channels. It also alleged that the transaction would give the combined company more than 30% of anticipated blockbuster film distribution.
Bonta has argued that the merger could result in higher prices, lower-quality content and fewer choices for audiences. Paramount has defended the acquisition and is pursuing a resolution to the litigation.
The companies and the states have agreed not to complete the merger until June 1, 2027, or until five days after a court decision on the merits of the states’ challenge, whichever comes first, according to Bonta’s office. If the court rules for the states, the merger would remain blocked while an appeal is pending.
The timing has increased pressure on Paramount. Under the terms of its agreement with Warner Bros. Discovery, Paramount would face a $7 million daily fee beginning Oct. 1 if the merger has not closed, the Post reported.
For Filipino American audiences, the case places Bonta, one of the country’s highest-ranking FilAm elected officials, at the center of a consequential battle over media consolidation and the future of two major entertainment companies.
