Newsom Faces Backlash Over Reported Stance on Paramount-Warner Merger

The report, which surfaced Friday, suggests the governor is worried about potential job losses in Hollywood should the deal collapse. While Newsom holds no formal authority over the attorney general’s litigation, his reported intervention has ignited a firestorm among political analysts and media watchdogs. Critics argue that corporate consolidation typically triggers mass layoffs, contradicting the governor’s stated rationale for the outreach.

At the center of the controversy is the expansion of media influence under David Ellison, son of billionaire Larry Ellison, a prominent donor to Donald Trump. David Dayen, executive editor of The American Prospect, characterized the governor’s reported stance as siding with capital over workers, while others questioned the political logic of the move. Antitrust expert Matt Stoller offered a note of caution regarding the reports, suggesting it would be strategically reckless for a 2028 presidential hopeful to champion a merger that empowers allies of the former president.

Last week, California and a coalition of state attorneys general secured a significant legal win when a federal judge issued a temporary restraining order, halting the merger’s progress. The companies have since agreed to delay closing the deal until June 1 or until a trial concludes, whichever comes first.