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Paramount-Warner Bros Deal Has States Eyeing More Than Just Antitrust Issue

EXCLUSIVE: In a tough and rough election year for incumbents, Paramount’s $111 billion acquisition of Warner Bros Discovery has become a political football in California and across the nation.
Just a few feet from Donald Trump, a smiling David Ellison was front and center last night for the UFC’s controversial and inflammatory Freedom250 cage matches on the White House lawn. Still, even with the Justice Department approving the WBD merger late last week without any concessions, the Paramount Skydance’s CEO’s happy face masked some spikey obstacles to the merger from overseas and in state houses over Ellison’s strategic bear hug with the ex-Apprentice host.
“The Ellisons’ haste to get their deal done by Trump has a lot of enemies,” an individual close to power players in Sacramento told Deadline after the June 12 sign-off by the federal DOJ. “They may think they’re home free, but that’s wishful thinking and not political reality.”
Led by California’s reelection-seeking Rob Bonta, nearly a dozen state attorneys general are poised to launch a lawsuit in the next few weeks to derail the ParaBros deal or at least take a bite out of it, Deadline can confirm. However, for all the antitrust threats opponents to the merger have floated, the mainly unspoken but real battle in this year of midterm elections seems to be about old-fashioned politics and firing up the base.
Having told Deadline ages ago that his office was pondering an antitrust action over the WBD meld, AG Bonta threw cold water on the Trump DOJ’s signoff last week with a curt “the merger of Warner Bros and Paramount is not a done deal and remains under investigation by my office” tweet.
At the same time, the Ellisons have retained Jeffrey Kessler to get in the legal octagon for them if the state throws down.
Having fought alongside Bonta, New York AG Letitia James and others recently in successfully pinning Live Nation in the antitrust suit the Trump administration had walked away from, Kessler is an inspired choice by Paramount on many levels. Kessler won’t tip his hand to the electoral backroom moves at play, but the Winston & Strawn litigator is very skeptical the states have an antitrust suit when it comes to ParaBros.
“I have great respect for the states,” Kessler told Deadline in true diplomatic fashion. From the lawyer’s POV there will be no “reduction in competition” in Hollywood if the two companies become one. “I think they’re very talented lawyers there, and I think they do a lot of wonderful things for the public good. I will not criticize the states in any way, shape or form.”
With the precision of a closing argument, he adds: “What I would say is what I would hope they are doing, and I believe they are doing is seeing if they actually have an antitrust case to bring that has a reasonable chance for success. My hope is that they keep an open mind, that they don’t make a decision based on politics on an antitrust case, and that they only file an action if they really think that they can prove an antitrust violation. That process takes a long time, so it doesn’t surprise me that they haven’t filed anything yet.”
Certainly, besides the midterms in November, there are some other real time calendars issues coming up fast for Paramount.
As a multi-phased review by UK regulators may have thrown their own spanner in Para-WBD works last week, there is some serious money on the table for Ellison and his Oracle founder father if the merger isn’t locked in by September 30. At that point, a ticking fee kicks in and Paramount would be paying hundreds of millions out to WBD shareholders every subsequent month.
For a merger already weighed down by debt and foreign interest concerns, that real money is a big deal.
Adhering the illusion of still being on the fence over the ParaBros merger even as they are sitting down with potential outside counsel and have received a newly flush antitrust-fighting war chest from Gov. Gavin Newsom, Bonta’s team will only say they are “taking a very close look and intend to be vigorous in our review of the proposed Paramount and Warner Bros merger.”
In a vigorous(ish) AG race against Republican Michael Gates this year, Bonta has been showing up almost everywhere, including a very partisan IATSE attended mock hearing in Burbank by Sen. Adam Schiff in March, pounding the Ellisons, to be seen in the warm glow of anti-merger activists and layoff fearing Hollywood workers.
“Our office will take necessary action if we find that the transaction is unlawful under antitrust law,” a circumspect spokesperson for the Golden State AG told Deadline this week as anticipation of their expect action has only grown in the last week. “The opposite is also true: we will give it a fair review on the merits, and if it looks good for California consumers, there won’t be further action. California DOJ has been doing this work for a long time: our office has intervened in mergers in the grocery, broadcast market, and healthcare industries and has no qualms about stepping in and stopping deals we find illegal — and stepping back if those deals pass regulatory scrutiny.”
“Beyond this, the Paramount acquisition of Warner Brothers remains an active investigation, and we do not have any updates to share at this time.”
On the other side of the country, NY AG James faces far lesser GOP rivals as the Trump foe heads into her own primary later this month. To that, James has played less of a role publicly in any Paramount-WBD legal action, while being a “big player” behind the scenes, I’m told. In that context, a spokesperson from the New York Attorney General’s office confirmed New York was part of the coalition of states lining up in opposition to the big bucks and seemingly fast-tracked merger but declined to discuss any potential lawsuit.
“Paramount is going to have to give something up, maybe control of CNN, if they want this deal to happen,” a well-placed political operative asserts. “They could have handled it differently from the start and maybe, maybe, have gotten buy-in from Democrats, They went full MAGA and there too many objections, too many minefields now.”
With big names like Mark Ruffalo, Jane Fonda and others taking to podiums and Zoom calls to invoke the First Amendment and decry the Ellisons’ links to MAGA (with the future of CNN eating up a lot of the spotlight after the ongoing chaos at the Bari Weiss-led CBS News), a follow-the-money game separate from the state AGs has emerged. As over 5,000 Tinseltowners signed an open letter praising Bonta and other mainly Blue State AGs for “scrutinizing the merger and considering legal action to block it,” the Block the Merger movement has been swatted with allegations it’s all being masterminded by MAGA boogieman George Soros and a cadre of socialist billionaires and antisemites.
Closer to home in the Democrats civil war that is the L.A. mayoral race between vulnerable incumbent Karen Bass and her ex-ally Councilmember Nithya Raman, the takeover of the David Zaslav-run WBD by Paramount has become a major campaign issue In a city pummeled by a massive decline in production, the loss of over 40,000 industry jobs the past couple of years and worries over deep cuts once ParaBros occurs.
Personally connected to Hollywood through her producer/writer spouse, Raman was blunt about where she sees this all going.
“This merger is bad for Los Angeles, and its math only works through mass layoffs,” the two-term Hollywood heavy District 4 councilor says. “When Skydance bought Paramount, over 2,000 people lost their jobs, many of them in Los Angeles,” she adds. “This is what consolidation looks like on the ground. Billionaires will benefit, while the workers who built this industry get left behind. I’m grateful the attorneys general are acting to block it, and as mayor I’ll make sure Los Angeles does everything in its power to support their case.”
Bass, who has lashed out at Raman over inaction for Hollywood even before her political pal beat Hills alum Spencer Pratt to secure a second spot in the fall runoff, was more measured, kinda.
“The entertainment industry is at the core of who we are as a city, LA’s place on the global stage, and to our entire economy,” the ex-Congresswoman told Deadline. “I cannot support a deal that results in massive job losses,” Bass, who has family members of her own working in the industry, went on to say.
“I urge regulators to enforce job protections and creative freedom, and I call on Paramount’s leadership to redouble its commitment to the industry workers in our city.”
That’s a helluva lotta trust.

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U.S. Average Gasoline Prices Slide Below $4 Per Gallon

Patrick De Haan, a petroleum analyst at GasBuddy, wrote on X that the national average price of gasoline has finally slipped below the politically sensitive $4-a-gallon level for the first time in many months.
Per De Haan:
The nation’s average price of gasoline has fallen 9.3 cents over the last week and stands at $3.99 per gallon, according to GasBuddy data compiled from more than 12 million individual price reports covering over 150,000 gas stations across the country.
The national average is down 52.4 cents from a month ago and is 91.1 cents per gallon higher than a year ago. The national average price of diesel fell 11.7 cents in the last week and stands at $5.182 per gallon.
“Average gasoline prices fell in 47 states over the last week, with the national average dropping below $4 per gallon late Sunday for the first time since mid-April,” said Patrick De Haan, head of petroleum analysis at GasBuddy.
De Haan continued, “The decline came as oil prices moved sharply lower in reaction to news of a potential deal between the United States and Iran, though it remains to be seen whether the agreement will hold. A handful of price-cycling states saw averages jump before joining the broader downward trend. The real test now shifts to the Strait of Hormuz, where any reopening and resumption of normal oil flows would be the clearest signal that this relief is durable. For now, the national average could continue falling, provided there isn’t a drastic reversal and the U.S. and Iran continue moving in a positive direction.”
Looking at WTI crude futures and the AAA national average for gasoline, the implied decline suggests gas prices at the pump could tumble toward $3.75 by mid-summer.
Great news ahead of midterm elections.
Pump Pain Relief? Gas Above $4 May End Soon As U.S.-Iran Peace Deal Sends Oil Lower
The national average for U.S. gasoline prices has hovered above the politically sensitive $4-per-gallon level for 76 days, or roughly 2.5 months, as the Gulf energy shock tightened physical markets and forced emergency SPR draws.
But with President Trump declaring late Sunday, just 30 minutes before NY futures opened, that a US-Iran peace deal has been secured, and with WTI and Brent futures tumbling, pressure at the pump could begin to ease in the very near term.
National gasoline prices could slip back below $4 in the coming days or weeks if the crude selloff holds and traders begin pricing in a reopening of the Strait of Hormuz. Still, normalization of crude energy flows will likely take months, if not longer, to return to pre-war levels.
As of Sunday evening, AAA data show the national average for 87-octane gasoline stands at around $4.074.
Patrick De Haan, a petroleum analyst at GasBuddy, wrote on X shortly after Trump announced the peace deal that the national average for gas could fall to $3.75 by July 4.
De Haan wrote:
The U.S. and Iran signaling a deal has been struck. The next few days will be key to see if the agreement sticks, and if traffic begins moving in the Strait. WTI crude down 5%, as more confirmations come in days ahead, national average price of gasoline may continue to fade.
Beyond that, the national average could fall below $3.75/gal by July 4, under a optimistic timeline, but hurricane season could be a major wildcard for the rest of summer- tight global inventories mean it will take months or beyond to fully restore global oil inventories.
The next several weeks will be key- one major slip up could impact greatly prices moving forward. And with so many speedbumps in this situation, it may be foolish to think this problem is now completely over. Time will tell.
Surging gas and diesel prices over the last 2.5 months have added downward pressure on consumers, especially working-class households, who were hit with sticker shock at the pump.
The combination of elevated gas prices and fading tax-refund tailwinds had already begun to expose cracks in the consumer economy, particularly among lower- and middle-income households. That likely served as a warning signal for the Trump administration: resolve the Middle East conflict before worsening consumer sentiment and pain at the pump become much larger political liabilities heading into the midterms.
By Zerohedge.com
More Top Reads From Oilprice.com
Oil Prices Plunge as U.S. and Iran Reach Deal to Reopen Strait of Hormuz
Russian Governors Rush to Deny Fuel Crisis as Rationing Spreads
Nigeria’s Crude Oil Production Hits 15-Month High

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Centene to offer buyouts to some employees

Centene said it offered buyouts to some employees on Monday, as the health insurer grapples with higher medical costs, funding cuts and membership declines.
“Centene is positioning the company to lead the future of healthcare — working to deliver a simpler and better experience for our members and partners while meeting the realities of today’s healthcare environment,” a company spokesperson said in a statement. “Today we announced a Voluntary Separation Program to support employees who may be considering a transition.”
The company did not indicate how many employees were offered buyouts or how much it is aiming to reduce its workforce. Shares initially fell 4% after Bloomberg first reported the news on Monday.
Layoffs could follow if the company doesn’t meet the target for voluntary separations, Bloomberg reported.
Centene is the largest Medicaid provider and is focused on other federal health plans through Medicare and the Affordable Care Act. The buyouts come after the company reported a decline in membership in the first quarter, down 6% year over year to 26.3 million, according to a filing.
Centene’s ACA business lost about 2 million members in the first quarter compared with the end of 2025, primarily because Congress let enhanced federal subsidies in the program expire at the start of the year. The company in March also said it expects ACA membership to fall nearly 40% by the end of 2026, executives said in March at a Barclays conference.
Centene is bracing for the impact of more than $900 billion in cuts to Medicaid over a decade, and the broader insurance industry is still managing higher-than-expected medical costs in privately-run Medicare plans.

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Chase Sapphire Preferred Card Introduces New Perk for Apple Customers

Chase this week announced new perks for its Sapphire Preferred credit card, and one of them is a complimentary one-year Apple TV streaming subscription.
To get the free year of Apple TV, which typically costs $12.99 per month in the U.S., you must activate the card by December 31, 2026.
If you are already subscribed to Apple TV directly through Apple, the complimentary subscription from Chase will automatically supersede your paid subscription until it ends, at which point the paid subscription will resume at the going price.
As noted by 9to5Mac, Apple One subscribers can receive a $7.50 discount per month instead.
If you are subscribed to Apple One directly through Apple, and activate your complimentary Apple TV access on Chase.com or the Chase Mobile app with the same Apple Account connected to your Apple One billing, you will automatically receive a $7.50 discount on your Apple One subscription for 12 months starting on your next billing period.
Chase’s Sapphire Preferred card continues to have a $95 annual fee. New and existing cardholders have access to these new benefits starting today.
The other new benefits include 3× points on gas, EV charging, and Airbnb and Vrbo bookings, while the card’s annual hotel statement credit has been doubled to $100. There is also a new $120 Global Entry, TSA PreCheck, or NEXUS credit every four years, along with new “emergency evacuation and transportation” coverage.
On the other hand, the 10% anniversary bonus benefit is being discontinued, and Ultimate Rewards points will transfer to World of Hyatt at a rate of 4:3.
More details are available in Chase’s press release. For a limited time, new cardholders can earn 100,000 points after spending $5,000 in the first three months.

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Porn company can sue Meta for torrenting adult films, judge rules

A federal judge has denied Meta’s attempt to dismiss a lawsuit claiming it violated copyright law by torrenting (illegally downloading) porn to train its AI.
On June 11, U.S. District Judge Eumi K. Lee filed the order, stating that porn holding company, Strike 3 Holdings, and Counterlife Media (in which Strike 3 has a majority ownership interest), “have plausibly alleged that [Meta] is liable for direct, vicarious, and contributatory copyright infringement based on the torrenting of their films.”
Strike 3 Holdings, which owns several popular porn sites like Blacked, according to 404 Media, first filed the lawsuit in July 2025. Strike 3 Holdings and Counterlife Media alleged that, between 2018 and 2025, Meta infringed on more than 2,300 copyrighted pornographic movies by downloading them to train its AI models. Meta is alleged to have used the popular torrenting program BitTorrent.
IP addresses that trace back to Meta’s corporate offices acted “consistently in non-human patterns,” the suit states, “involving mass infringement beyond what a human could consume.” The companies are seeking damages up to $359 million.
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Meta filed the motion to dismiss against the Strike 3 lawsuit in Oct., denying the claims and stating that they were “nonsensical and unsupported” and that the porn downloads were for “personal use.” But in the order denying the motion, Lee remarked on the download patterns, such as the IP addresses torrenting similar files with the same name, all in one day, from cartoons to porn. “It strains credulity to suggest that these correlations are mere coincidence and the product of individual human selections,” Lee wrote.
Now, the lawsuit can proceed.
Strike 3 and Counterlife Media became aware of Meta’s BitTorrent activity through press coverage of the Jan. 2025 lawsuit against Meta. Discovery in that case revealed that the company pirated books for AI training. In June 2025, Meta won the case. However, as Mashable reported at the time, the judge in that case wrote that the plaintiffs may have been successful if they had made different legal arguments, leaving the door open for suits such as this one.
Mashable has reached out to Meta for comment.

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Chase adds free Apple TV, discounted Apple One benefit to popular credit card

Chase announced new benefits for its Sapphire Preferred card today, including free Apple TV for a year or discounted Apple One. Here are the details.
Chase Sapphire Preferred now offers free Apple TV for a year, with Apple One credit alternately available
Apple TV has long been included as a benefit for Chase Sapphire Reserve cardholders. But that credit card has a very pricey $795 annual fee.
Today though, Chase announced that Sapphire Preferred cardholders now get free Apple TV too.
Chase Sapphire Preferred is a popular travel-focused card, with a much more affordable $95/year annual fee than the pricier Reserve card.
To get Apple TV free for a year, Sapphire Preferred cardholders need to activate the offer by December 31, 2026.
It’s available to new and existing cardholders. You just have to link your Apple Account to Chase via the Benefits portal on Chase’s app or website.
The free year of Apple TV is a $156 value overall, and joins a variety of other Sapphire Preferred benefits.
In a nice touch, existing Apple One subscribers can alternately get a $7.50/month credit to make Apple’s bundle more affordable.
Just connect your Apple Account to Chase in the same way, and the credit will be applied every month you’re subscribed to any Apple One plan for up to 12 months.
So if you already subscribe to Apple One, or want to start, you’ll still benefit from Chase’s new offer.
Additionally, if you do have the pricier Chase Sapphire Reserve, you can now get a $15/month credit as an Apple One subscriber, since the card includes free Apple TV and Apple Music. Previously, Apple One subscribers essentially missed out on the bonus.
Apple TV is available for $12.99 per month, or you can get it discounted through the Apple One bundle.
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