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Newsom Worries State Antitrust Suit Could Hurt Hollywood

Wall Street Journal US Business •
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California Gov. Gavin Newsom has voiced concerns regarding the state's antitrust lawsuit aimed at preventing the $81 billion acquisition of Warner Bros. Discovery, fearing it could negatively impact Hollywood employment. Newsom has reportedly urged individuals involved in the suit to seek an out-of-court resolution.

This stance highlights a potential divergence between Newsom and Attorney General Rob Bonta, whose office is independently pursuing the litigation. The governor's office has encouraged Bonta's office to resolve the matter amicably, emphasizing the potential harm to state jobs if the deal is blocked.

Hollywood, particularly Los Angeles, has already faced challenges due to industry consolidation, cost-cutting measures, evolving moviegoing habits, the growth of streaming services, and ongoing cord-cutting. The ultimate influence of Newsom's urging on the attorney general's decision remains uncertain, as the governor does not directly oversee the litigation.