Political pressure is mounting to resolve the standoff between California Attorney General Rob Bonta and Paramount Skydance Chief Executive David Ellison. The conflict revolves around Ellison’s proposed merger with Warner Bros., valued at $111 billion. A court-ordered mediation session is planned for this week, but an immediate resolution seems unlikely as both parties stand firm on business concessions required to settle the antitrust lawsuit.
The situation deteriorated further when Paramount threatened to relocate from California. The company also accused actor Mark Ruffalo, a vocal critic of the deal, of using “antisemitic tropes” to oppose the merger. Prominent Jewish organizations, including the Simon Wiesenthal Center and the Anti-Defamation League, defended Paramount, criticizing Ruffalo, known for roles such as the Hulk and appearances in HBO productions, for his comments.
Paramount’s statement expressed concern over the use of terms like “genocide” and “apartheid” regarding a corporate transaction, calling them excessive. The controversy began when Ruffalo drew attention to the support Ellison’s father, Larry Ellison of Oracle Corp., had for Israel, highlighting Oracle’s involvement with the Israeli military during the Israel-Gaza conflict. Ruffalo labeled the situation in Gaza as a “genocide built on an apartheid system of oppression powered by Oracle.”
“The accusation that I am antisemitic is appalling and fundamentally dishonest,” Ruffalo stated on X, defending his right to criticize the Israeli government and Oracle’s military contracts.
The tension heightened with a statement from Mark Goldfeder of the National Jewish Advocacy Center, criticizing Bonta for allegedly aligning with Ruffalo’s interests. The attorney general is accused of allowing personal biases to influence the antitrust lawsuit against Paramount.
California Attorney General Bonta and colleagues from 11 other states, all Democrats, filed the antitrust suit last month. Their argument centers on competition law rather than politics, with Bonta suggesting that Paramount sell certain assets to satisfy regulatory requirements — a proposal Ellison counters is inadequate.
Governor Gavin Newsom and Los Angeles Mayor Karen Bass have advocated for a settlement to retain Paramount’s presence in California. Newsom has reportedly expressed concerns over the threat of the company’s departure, viewing it seriously. Meanwhile, Bass has faced criticism from the Writers Guild of America, which accused her of supporting Paramount’s agenda during this contentious time.
A Los Angeles County report estimates that the merger could result in the loss of 4,500 local jobs, further complicating the situation. Key movie theater owners have reduced their opposition, encouraging negotiations.
Paramount recently insisted that Bonta and other states provide a $1.88-billion bond if the case extends to the trial in March. The ongoing judicial process includes mediation talks as an attempt to reach a resolution.
In a CNBC interview, Bonta criticized Paramount for raising issues outside the scope of the antitrust lawsuit. He emphasized a preference for settling disputes in boardrooms rather than courtrooms, a sentiment echoed by Democratic governor nominee Xavier Becerra, who has also called for a settlement.
“For now, we’re bringing our case,” Bonta stated, hoping Paramount will concentrate on the antitrust allegations.