California Governor Gavin Newsom has reportedly expressed concern over the antitrust lawsuit that his own state, alongside 11 others, has brought against Paramount's $111 billion (£87 billion) takeover of Warner Bros. Discovery, according to The Wall Street Journal. Sources told the newspaper that Newsom fears blocking the merger would harm state employment, and that his office has been encouraging California Attorney General Rob Bonta, who holds independent authority over the case, to seek a resolution outside of court rather than pursue the litigation to its conclusion.

The suit, filed on 13 July by 12 state attorneys general led by California, alleges the merger would combine two of Hollywood's top five studios, driving up prices, reducing the number of films released and lowering the quality and variety of content. The case prompted a temporary restraining order on the deal from a US district judge on 20 July, later extended, after which Paramount agreed not to complete the acquisition until June 2027 or five days after a court ruling, whichever comes first. While bodies such as Cinema United have backed the lawsuit, others including WME chairman Ari Emanuel have publicly urged the attorneys general to drop the case, reflecting a wider split among industry and political figures over the deal's future.