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Rob Bonta, California\u2019s attorney general, said his office will investigate a possible merger between Paramount Skydance<\/a> and Warner Bros Discovery, hours after Netflix backed away from a planned takeover.<\/p>\n \u201cParamount\/Warner Bros is not a done deal,\u201d Bonta said in a post on X<\/a>. \u201cThese two Hollywood titans have not cleared regulatory scrutiny \u2014 the California Department of Justice has an open investigation, and we intend to be vigorous in our review.\u201d<\/p>\n Any acquisition of Warner Bros<\/a> would require approval from regulators in the United States and Europe, including the US justice department\u2019s antitrust division. The deal Paramount struck for Warner is valued at nearly $111bn.<\/p>\n The merger poses a risk for California\u2019s economy. Paramount\u2019s bid is likely to raise concerns about job cuts in the state, which also dogged Netflix\u2019s bid. Paramount sees $6bn in cost \u201csynergies\u201d in the deal, which typically means massive layoffs, reducing the number of suppliers, squeezing existing contractors for better terms after the two companies merge or other reductions.<\/p>\n The chief executive of Paramount, David Ellison, said<\/a> his company was pleased the Warner Bros board had \u201cunanimously affirmed the superior value of our offer\u201d, which he said delivered \u201cWBD shareholders superior value, certainty and speed to closing\u201d. Ellison is the son of Oracle co-founder Larry Ellison, a close ally of Donald Trump.<\/p>\n On Friday, Warner Bros Discovery reportedly agreed to be acquired by Paramount Skydance<\/a>. Reuters and Deadline reported that the deal was announced in a global town hall by the company. Paramount and Warner Bros did not immediately confirm the deal to the Guardian.<\/p>\n A merger between the two media giants is also facing backlash from several lawmakers. Senator Elizabeth Warren, a key voice against growing monopolies, echoed Bonta\u2019s concerns after Netflix walked away from the deal on Thursday, and noted that Netflix CEO Ted Sarandos was seen<\/a> at the White House shortly before the company said it would bow out of the deal.<\/p>\n \u201cA Paramount Skydance-Warner Bros merger is an antitrust disaster threatening higher prices and fewer choices for American families,\u201d Warren said in a statement<\/a>. \u201cWhat did Trump officials tell the Netflix CEO today at the White House? A handful of Trump-aligned billionaires are trying to seize control of what you watch and charge you whatever price they want.\u201d<\/p>\n The senator added: \u201cWith the cloud of corruption looming over Trump\u2019s Department of Justice, it\u2019ll be up to the American people to speak up and state attorneys general to enforce the law.\u201d<\/p>\n On Friday, Bonta responded to concerns about the merger posted by actor Mark Ruffalo.<\/p>\n