The Monopoly Myth
When it comes to antitrust law, the vibes are off. California Attorney General Rob Bonta recently tried to block the merger between Paramount and Warner Bros. Discovery (WBD), claiming it would create a media monopoly. Real talk: it didn't hold up. Just like when the Trump administration tried to stop AT&T from grabbing Time Warner years ago, the legal argument was weak. While politicians love to talk tough about "crushing monopolies," the reality is that these companies are struggling to keep up with the real heavy hitters like Netflix and Big Tech.
Why the Deal Collapsed
WBD CEO David Zaslav has been cutting costs like crazy to turn a profit, but it wasn't enough. The company needed an exit, leading to the deal with Paramount Skydance, headed by indie producer David Ellison and his father, tech billionaire Larry Ellison. Bonta tried to position himself as a hero for the far-left by making the lawsuit all about politics—specifically the elder Ellison’s ties to Donald Trump. He even gave major shoutouts on X to actor Mark Ruffalo, who was essentially acting as an unofficial consultant for the antitrust case.
The Fallout
It’s giving messy. Once the drama started, the business world pushed back. David Ellison threatened to pull 50,000 jobs out of California if the state kept blocking the deal. Things went south for Bonta fast after Mark Ruffalo made controversial comments linking Larry Ellison and his company, Oracle, to the conflict in Gaza. Hollywood’s pro-Israel donors were highkey pressed, letting Governor Gavin Newsom and other state leaders know they weren't about to support an AG taking legal advice from a movie star. The result? A settlement that was a massive W for the Ellisons and a total flop for Bonta, who walked away without a single one of the structural changes he demanded.
Why it matters
This is a classic case of "money talks." When a politician tries to use antitrust law to score points with their base instead of focusing on actual market competition, the economy loses. While the state was busy playing political theater, the average person's subscription bills for streaming services continue to climb. Bonta might have gotten his 15 minutes of fame, but he left behind a reputation for political fecklessness that might haunt his future career moves.
