Why did Newsom back the Paramount-Warner settlement?

Newsom backed a negotiated settlement over the Paramount-Warner Bros. antitrust case largely to protect California's film industry and jobs, warning that the standoff risked prompting the combined studio to relocate operations out of state [1]. His comments came as Paramount Skydance and the California Attorney General's office were preparing to meet to discuss resolving the case, which is otherwise headed to a March trial [2].