Paramount CLO Defends $110B Warner Merger to CA AG

Paramount Global's chief legal officer defended the company's proposed $110 billion acquisition of Warner Bros. Discovery in a letter sent on May 7 to California Attorney General Rob Bonta, whose office is reviewing the deal for potential antitrust violations.

Makan Delrahim wrote that the merger would enhance theatrical distribution to help the combined entity compete against larger streaming services like Netflix, Disney and Amazon. Theatrical releases, he argued, build awareness and anticipation through marketing and word-of-mouth, converting demand into streaming viewership later. "The new company will have every incentive to get more films into wider distribution on more movie theatre screens," Delrahim stated, adding that theaters remain a core strategy for audience engagement.

Paramount pledged to release at least 30 films annually, with each receiving a minimum 45-day exclusive theatrical window. The company's studios would each produce at least 15 films per year while maintaining full staff for production and distribution. Data cited in the letter from OpusData shows Paramount and Warner Bros. Discovery together account for about 25 percent of domestic box office...