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California Antitrust Suit Threatens Hollywood Merger

Wall Street Journal US Business •
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Politicized antitrust cases are the neutron bomb that might drive filmmaking to leave California. Who thinks the California-led antitrust lawsuit to break up the Warner Bros.-Paramount merger isn't about politics? Apparently nobody. Not even California's Attorney General Rob Bonta, who claims to be merely "enforcing the laws." He always adds a "no kings" peroration, signaling the obvious: The fight is about politics, not business, and like many political fights threatens to leave ruination in its wake.

No wonder the contest has become politically abhorrent to Gov. Gavin Newsom and his likely successor, Xavier Becerra, who both see it's doing no good for the state's precious entertainment industry. Ditto agents, theater owners, even some of Hollywood's unions. The lawsuit risks accelerating the exodus of production from California, undermining the very industry state leaders claim to protect.