California Attorney General Rob Bonta abandoned his lawsuit seeking to block the Paramount–Warner Bros. merger after political pressure weakened his position. Governor Gavin Newsom urged a settlement, while Paramount threatened to move operations to Tennessee, raising fears about further damage to Hollywood during a production slump.

Bonta argued that the merger reflected politically motivated antitrust enforcement, but the case faced doubts over its legal strength and lost support from industry groups including the Directors Guild of America, IATSE and Cinema United. Paramount ultimately secured a settlement without Bonta winning a favourable court ruling, while intervention by the Trump administration and Republican state attorneys general further constrained the case.