Business
Pressure grows on California attorney general to try to block Paramount’s deal for Warner Bros.
California Democrats in Congress are raising concerns about Paramount Skydance’s proposed takeover of Warner Bros. Discovery — a $111-billion deal that would dramatically reshape Hollywood by consolidating two historic film studios.
Rep. Laura Friedman (D-Glendale) and 33 other members of Congress on Thursday urged California Atty. Gen. Rob Bonta to scrutinize potential antitrust harms that would come from billionaire David Ellison’s proposed takeover of Warner Bros. Discovery — and possibly bring a legal challenge. The lawmakers’ campaign comes after more than 4,000 entertainment industry workers, including Jane Fonda, Ben Stiller and J.J. Abrams, signed an open letter calling for the deal to be blocked.
“We remain concerned that the proposed merger could harm California workers and consumers,” the 34 lawmakers wrote in their letter to Bonta. “We therefore respectfully urge you to closely analyze the potential effects of this merger, and, if you determine that this merger would have anticompetitive effects, use your best judgment to pursue the appropriate course of action.”
The deal, the largest Hollywood merger in nearly a decade, would bring together Warner Bros. and Paramount Pictures, streaming services HBO Max, Discovery+ and Paramount+, more than two dozen cable channels as well as CBS News and CNN. Paramount has said it expects the combination would bring at least $6 billion in cost savings, raising fears among the Democrats about widespread job losses.
Pressure is growing on Bonta to try to thwart Ellison’s proposed merger.
Bonta has previously told The Times his office is reviewing the proposed combination to determine whether it would harm consumers and industry competition. On Thursday, a spokesperson confirmed there was still “an active investigation,” into the proposed merger, but Bonta’s office had no “updates to share at this time.”
Bonta separately has brought a lawsuit with a bipartisan group of 13 state attorneys general to halt another merger — a massive consolidation of television stations by Nexstar Media Group — favored by President Trump.
The president wants to give more power to Nexstar, which owns network affiliate TV stations, to weaken ABC and NBC. In that case, a federal judge in Sacramento has issued a temporary injunction to freeze the merger until a trial to determine whether that deal violates century-old antitrust laws. Irving, Texas-based Nexstar is appealing the ruling.
Critics of the Warner Bros. deal are nudging Bonta to separately bring a lawsuit to block Paramount’s proposed takeover of its rival.
“Writers have seen merger after merger leave fewer and fewer companies in control of what our members can get paid to write,” Writers Guild of America West President Michele Mulroney said to make a case against the merger during a press briefing last month.
Warner Bros. Discovery shareholders have voted overwhelmingly in favor of the Paramount transaction that would pay them $31 a share.
Several U.S. senators, including Cory Booker (D-N.J.), also have sounded alarms, including about plans to bring sovereign wealth funds representing the royal families of Saudi Arabia, Qatar and Abu Dhabi into the deal as minority investors. Those Middle Eastern investors would hold a nearly 50% equity stake of the new company, although Paramount has said the wealth funds would not have board seats.
The Paramount-Warner Bros. transaction is expected to fly through its antitrust review at the U.S. Justice Department, in part, because billionaire Larry Ellison, who has agreed to backstop the financing for the deal, maintains close ties with Trump. Paramount has said it expects the deal to be completed before the end of September.
Rep. Laura Friedman at APLA Health, Michael Gottlieb Health Center in West Hollywood June 28, 2025.
(Myung J. Chun / Los Angeles Times)
Trump has agitated for changes at CNN, one of Warner’s most prominent properties. Ellison’s son David, who is chairman and chief executive of Paramount, hosted a party in Washington two weeks ago to honor Trump and other high-level cabinet officials, including some who have expressed a desire to see Ellison in charge of CNN.
“The proposed merger does not occur in a vacuum,” the lawmakers wrote. “Decades of consolidation in this industry have already resulted in reduced output, higher prices, fewer choices, and less innovation, while merged studios face few consequences for breaking their pre-merger promises.”
Paramount representatives, who did not immediately comment Thursday, have previously defended the proposed takeover.
David Ellison has also promised to maintain the two studios’ current release schedules of 15 movies a year — for a total of 30 films a year — following the merger.
“This is also a moment when the industry has been facing significant disruption — and the need for strong, creative-first and well-capitalized companies that can continue to invest in storytelling has never been greater,” Paramount has said, adding that it will follow through on its commitments to ensure that “creators have more avenues for their work, not fewer.”
The Congress members’ letter also called into question the Trump administration’s oversight, alleging there has been “unprecedented politicization of antitrust enforcement.”
“Given that we cannot have confidence that the Trump administration review of the merger will be conducted according to the law, and with the best interests of American workers and consumers in mind, it is even more vital that you conduct a thorough, independent review,” the lawmakers wrote in the letter to Bonta.
Federal regulators agreed to approve the Ellison family’s acquisition of Paramount last summer after Paramount agreed to pay Trump $16 million to settle a lawsuit he brought over edits to a CBS “60 Minutes” interview with Democratic nominee Kamala Harris prior to the 2024 election.
The proposed merger would saddle the combined company with $79 billion in debt, stoking fears that Paramount would be forced to make steep cost cuts to balance such a large debt load. In the last three months, Paramount lined up banks and other institutional investors to provide bridge financing to help pull off the transaction, the company said.
The letter from Friedman and the others noted that the film industry in Los Angeles already is almost on the ropes. Last summer, on-location production in the Los Angeles area declined by 13%. More than 42,000 film industry jobs were lost between 2022 and 2024, a period that included two labor strikes.
David Ellison, the chairman and chief executive of Paramount Skydance, attended President Trump’s State of the Union address in February as a guest of Sen. Lindsey Graham (R-South Carolina).
(Anna Moneymaker / Getty Images)
Friedman was joined by a group of prominent Democrats that includes Reps. Judy Chu (D-Monterey Park), Nancy Pelosi (D-San Francisco), Julia Brownley (D-Westlake Village) , Lou Correa (D-Santa Ana), Ro Khanna (D-Fremont), Ted Lieu (D-Torrance), Brad Sherman (D-Sherman Oaks), Maxine Waters (D-Los Angeles) and George Whitesides (D-Santa Clarita).
Business
How the FIFA World Cup is providing a boost for L.A. businesses
Johnny Beig may have played in a semi professional cricket league in Australia, but this summer he’s a big fan of soccer in the United States.
It’s not just because he’s rooting for the World Cup team, though.
FIFA emblems are featured on jerseys that were created by the Dioz Group and distributed for all employees at the 16 FIFA World Cup venues this summer.
(Genaro Molina / Los Angeles Times)
Last year, Beig’s Beverly Hills-based company, Dioz Group, won a $2.5 million contract with On Location, FIFA’s hospitality partner, to design, manufacture and distribute uniforms for all employees working at FIFA World Cup venues this summer.
These include the people welcoming attendees into stadiums, VIP lounge chefs, waiters and the flagbearers during the opening ceremony.
After a multi-step application process, including presentations of its planning and strategy, Dioz says it produced more than 50,000 clothing garments including suits, jackets, shirts and hats and delivered them to the 16 World Cup venues around the U.S., Canada and Mexico in June.
Thanks in part to the World Cup contract, the company’s revenue has reached $15 million so far this year, compared with $20 million last year, Beig said. He declined to disclose the company’s net income but said the business was profitable.
“We are working with larger names that we would have never imagined we would,” he said. “The FIFA World Cup is the pinnacle. Working with the largest sporting event in the world is what we’re very proud of. I don’t think it gets any bigger than that.”
Volunteers line up to prepare to display the Canadian flag before a World Cup round of 32 knock-out match between Canada and South Africa at SoFi Stadium on Sunday.
(Kelvin Kuo / Los Angeles Times)
Dioz is among the many small businesses across Los Angeles that are getting a boost from the global sporting event, said Kevin Klowden, a senior fellow at the Milken Institute.
The influx of hundreds of thousands of fans into the city has been a boon to hotels, transportation services and restaurants, in addition to those in the special events and logistics economy, Klowden said, calling the event the “equivalent of multiple Super Bowls.”
“The number of contracts that are there, it’s a big deal,” he said. “Given the fact that L.A.’s filming is only slowly recovering, having something like the World Cup is definitely a boost.”
Dioz was co-founded by Johnny, 44, and his brother Tony in 2006. The brothers were born in India and raised in Australia, where Johnny enjoyed a brief career as a semi professional cricket player.
He realized his future wasn’t as a professional athlete, but he wanted to stay connected to the sports world, so he began making uniforms for his cricket team in 2006.
He then got a referral to make uniforms for multiple teams in the area before starting an apparel company.
“I wanted to stick with something I was passionate about, which is sports,” he said.
Volunteers unravel the center field display before a World Cup round of 32 knock-out match between Canada and South Africa at SoFi Stadium on Sunday.
(Ronaldo Bolanos / Los Angeles Times)
In 2012, Beig moved to Los Angeles and established Dioz‘s Los Angeles headquarters to tap into the U.S. market. During the pandemic, the company started supplying medical apparel to hospitals and schools, and the business took off, with revenue doubling in 2020, Beig said.
Dioz now has over 150 employees, including 15 in L.A., and manufactures its apparel at factories in China, India, Bangladesh, Turkey and the Philippines. Tony runs an office in Dubai.
Before the World Cup, Dioz provided employee uniforms for events including Super Bowl LIX and Copa America, which may have given it a leg up on the FIFA contact.
Now, with a World Cup contract on their resume, Beig said he’s setting his sights on even bigger events.
“This gives us an edge over the next FIFA events worldwide as well, where we can showcase our skills and we can handle it,” Beig said. “So it gives us a good opportunity to work with sporting events like the UEFA Championship and Premier League.”
As companies get new business from the World Cup, Klowden said it’s important that they leverage their new position to continue that growth.
Companies that benefited from the World Cup might be in a position to bid on even bigger contracts, especially with the Olympics coming up in 2028, Klowden said.
“The really important part in any of these deals is that if a company ran something like this, then they are able to build off of that success,” Klowden said. “Let’s say you’re a company that did a big uniform order or a big food order, and the World Cup goes, and you invested in new manufacturing capacity, or you invested in new clothing machines, or whatever you do; suddenly you don’t have that market anymore, then you’ve just wasted all that money ramping up.”
Business
Home insurer surcharges for wildfires is legal, judge rules
Surcharges that California homeowners have been hit with statewide by insurers defraying the costs of Los Angeles County’s wildfires were ruled legal in a decision released late Tuesday.
L.A. County Superior Court Judge Tiana Murillo turned down a petition by advocacy group Consumer Watchdog to halt the charges, which insurers began levying last year after the state’s insurer of last resort couldn’t pay all its January 2025 fire claims.
The California FAIR Plan, financially backed and operated by the state’s licensed home insurers, needed a $1-billion bailout from the insurers after it was hit with some $4 billion in claims.
Under a deal Insurance Commissioner Ricardo Lara worked out with the FAIR Plan in 2024, the insurers could seek state approval to surcharge their residential policyholders for up to half of any assessment totaling $1 billion in case the plan needed a bailout in an “extreme worst case scenario” — as it turned out it did.
A total of 105 insurers, including State Farm General — California’s largest home insurer — Farmers and Mercury sought and received approval for the surcharges.
Because the FAIR Plan assessed its member insurers based on their share of the state’s home insurance market, the policyholder surcharges were in the same ballpark. The median fee for homeowners was $28, according to the department of insurance.
The fee can be more or less according to the size of a homeowner’s premium and is split into monthly payments that insurers can spread over one or two years. Condo owners and renters on average were surcharged less.
In a court filing, Consumer Watchdog said $420 million in surcharges were approved.
In its April 2025 lawsuit filed against Lara, the Los Angeles group made a series of arguments in seeking to overturn the residential surcharges, which it deemed an industry bailout. It did not sue over related commercial surcharges.
Consumer Watchdog contended in its lawsuit that the surcharges violated Proposition 103 — the 1988 measure that governs insurer rate hikes — because the proposition does not allow for them.
It also claimed Lara did not follow regulatory protocol in promulgating the new policy.
The group further alleged that the FAIR Plan’s governing statutes do not give Lara the authority to permit the surcharges — and that the statutes require insurers to share in the plan’s profits and losses, and not shift losses to policyholders.
Murillo, and another judge who previously heard the case, turned down all of the consumer group’s arguments in separate rulings, the last of which Murillo issued Tuesday night.
Lara celebrated his legal victory over Consumer Watchdog, which has accused Lara of having close ties to insurers and sought to oust him from office. His terms ends in January.
“This victory sends a loud and clear message: The era of allowing special interests to derail consumer choice is over. We have the momentum, we have the authority, and we will continue to fight until every Californian has access to the coverage they deserve,” Lara said in a statement.
Attorney Will Pletcher, litigation director of Consumer Watchdog, said the group disagreed with the decision and would “consider all options to move this forward.”
“It’s important to try to protect California consumers from these surcharges that we think are in pretty clear conflict with both Proposition 103 and the FAIR Plan,” he said.
Hilary McLean, a spokesperson for the plan, said in a statement it did not have any position on the ruling, given the plan “does not have a role in determining how insurers manage costs associated with assessment.”
Denni Ritter, vice president of state government relations for the American Property Casualty Insurance Assn., a major industry trade group, said the decision rejected “the reckless lawsuit brought by the self-interested group Consumer Watchdog…”
“This ruling preserves a vital tool to protect the stability of the California insurance market. Blocking cost recovery would have undermined the state’s last-resort coverage option,” she said in a statement.
The 2024 policy was issued in response to the rapid growth of the plan due to a series of wildfires over the last decade that prompted multiple insurers to retreat from the state’s home insurance market.
The plan had 264,000 homeowners on its rolls in September 2022, a figure that rose to 452,0000 in the months before the fires — and its residential policyholders have since increased to 663,000 as of March.
The FAIR Plan offers policies that typically cost more than those issued by regular insurers while offering less coverage.
A Times analysis last year found that in the Palisades and Eaton fire zones, the plan’s rolls nearly doubled to 28,440 from 2020 to 2024.
That concentration of policyholders led to the plan’s large losses during the Jan. 7 wildfires, which damaged or destroyed more than 18,000 structures, killing at least 31 people.
It’s been estimated that the insured losses for the wildfires could ultimately total as much as $40 billion, exceeding any past wildfires worldwide. Ritter said that so far insurers have paid $23.7 billion in claims.
The 2025 wildfires were not the only time the FAIR Plan has needed a bailout, though it is the first time its member insurers surcharged policyholders.
In 1993, it assessed carriers after fires in Altadena and Malibu, and in 1994 it did so after the Northridge earthquake. The assessments totaled $260 million.
The plan received approval this year from the insurance department for a 29% rate increase for its homeowner dwelling policy that will take effect in October.
Business
First recorded Tesla Semi crash kills two people in Nevada
An electric Tesla Semi truck crashed into two vehicles in Dayton, Nev., over the weekend, killing two people and raising questions about the truck’s safety features.
The Lyon County Sheriff’s Office responded to a major collision around 7 a.m. on Sunday at the intersection of Highway 50 and Traditions Parkway about 40 miles east of Reno, the office said.
The office confirmed a semi-truck was involved in the accident, and footage of the scene shows it was a Tesla Semi.
It is the first known crash involving a Tesla Semi, an electric Class 8 truck that Tesla is building in Nevada and plans to ramp up production of. As interest in Tesla’s electric passenger vehicles wanes, the company is betting on the truck to give it a needed boost.
The trucks do not have the Full Self-Driving mode available in Tesla cars, but Tesla’s website says they come standard “with active safety features that pair with advanced motor and brake controls to deliver traction and stability in all conditions.”
According to the Lyon County Sheriff’s Office, preliminary statements obtained at the scene suggest the truck driver may have fallen asleep behind the wheel.
The crash is under investigation by the Nevada State Police Highway Patrol, which said additional information may be released next week.
The Record-Courier identified the victims as Sergio and Jennifer Villanueva, a couple who got married in 2022.
Tesla has not clarified if its semitruck has an automatic emergency braking system. Federal regulators are currently weighing a mandate for emergency braking systems in vehicles more than 10,000 pounds.
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