California Attorney General Rob Bonta is under scrutiny following calls for an investigation prompted by a Republican challenger and the California GOP. They question whether political funding associated with Netflix co-founder Reed Hastings’ family influenced Bonta’s decision to file a lawsuit in federal court to block Paramount’s $110 billion acquisition of Warner Bros. Discovery.
Republican nominee for the California attorney general position, Michael Gates, highlighted the need for an investigation, citing the financial connections in an interview with Fox News Digital. Gates accused Bonta of utilizing his office for political gains and catering to donors. He suggested that Bonta’s legal actions against a Netflix rival are politically motivated and commented on the perceived favoritism towards companies supporting Bonta’s political action committee.
A review of campaign-finance records by Fox News Digital reveals that Patty Quillin, Hastings’ wife, contributed $1 million to the Smart Justice California Action Fund in March 2022. This committee later allocated $150,000 to Communities for Justice Supporting Rob Bonta for Attorney General in May 2022.
California Republican Party Chairwoman Corrin Rankin raised concerns regarding Bonta’s actions and emphasized suspicions around his motives. In her statement to Fox News Digital, Rankin criticized the potential influence of Netflix donation money on Bonta’s legal actions targeting a Netflix competitor.
Los Angeles attorney Elizabeth Barcohana, a California GOP delegate, also commented on the situation, suggesting that Bonta’s lawsuit intends to benefit Netflix by protecting its streaming market share.
Bonta’s office dismissed the allegations, stating that their legal challenge was based on a thorough antitrust analysis, concluded from an investigation evaluating potential acquisitions of Warner Bros. by Netflix or Paramount. The press office emphasized their objective to ensure competition and consumer protection, asserting that their lawsuit was firmly grounded on legality and policy.
The lawsuit claims the merger would give the resultant conglomerate a 27% market share in wide-release theatrical film distribution and basic-cable channel licenses, potentially hindering competition. However, the Justice Department found the opposite after an extensive investigation.
Britain’s competition authority recently approved the acquisition, with Bonta’s legal challenge remaining as a significant barrier. Paramount agreed to delay finalizing the deal until legal proceedings conclude, with a federal trial scheduled for March.