1
00:00:02,520 --> 00:00:07,040
Speaker 1: Bloomberg Audio, Studios, podcasts, radio news.

2
00:00:08,039 --> 00:00:10,600
Speaker 2: It's balance of power on Bloomberg TV and Radio. I'm

3
00:00:10,640 --> 00:00:13,040
Speaker 2: Joe Matthew. Thanks for joining us on the Friday edition.

4
00:00:13,080 --> 00:00:16,480
Speaker 2: After a month long battle for Warner Brothers, Paramount has

5
00:00:16,520 --> 00:00:20,160
Speaker 2: officially outbid Netflix by agreeing to pay one hundred eleven

6
00:00:20,280 --> 00:00:23,520
Speaker 2: billion dollars for the Hollywood studio and paying Netflix for

7
00:00:23,520 --> 00:00:26,040
Speaker 2: the two point eight billion dollar breakup feed It terminate

8
00:00:26,079 --> 00:00:29,440
Speaker 2: its initial merger agreement just a short time ago. The

9
00:00:29,480 --> 00:00:33,280
Speaker 2: merger raising concerns about market consolidation, of course, job losses.

10
00:00:33,320 --> 00:00:34,559
Speaker 3: You've heard about it on Bloomberg.

11
00:00:34,600 --> 00:00:38,199
Speaker 2: It's still pending regulatory approval, with Paramount chief David Ellison

12
00:00:38,200 --> 00:00:41,440
Speaker 2: already asked to testify before Congress next week, as Democratic

13
00:00:41,479 --> 00:00:45,040
Speaker 2: Senator Corey Booker announces a probe into the potential Paramount

14
00:00:45,200 --> 00:00:47,599
Speaker 2: Warner Brothers merger, and Booker is not the only one,

15
00:00:47,600 --> 00:00:52,000
Speaker 2: with California's Attorney General Rob Bonto warning Paramount's WBT takeover

16
00:00:52,200 --> 00:00:56,680
Speaker 2: is not a done deal yet, vowing a vigorous investigation

17
00:00:56,800 --> 00:00:59,920
Speaker 2: and he's with us right now for more. Attorney General,

18
00:01:00,120 --> 00:01:02,279
Speaker 2: is this deal not over? What are you looking at?

19
00:01:03,280 --> 00:01:07,679
Speaker 1: Not a done deal? The regulatory process still needs to

20
00:01:07,720 --> 00:01:10,520
Speaker 1: be completed. There are hurdles there that have not been

21
00:01:10,560 --> 00:01:14,600
Speaker 1: traversed yet by this proposed deal, and we have a

22
00:01:14,680 --> 00:01:16,760
Speaker 1: job to do and we're going to do it. We

23
00:01:16,800 --> 00:01:19,240
Speaker 1: have an investigation. We're looking at the deal. We're looking

24
00:01:19,280 --> 00:01:24,080
Speaker 1: at its potential anti competitive impacts, and we know that

25
00:01:24,120 --> 00:01:30,640
Speaker 1: corporate consolidation tends to increase prices, lower wages, lower competition,

26
00:01:30,880 --> 00:01:35,280
Speaker 1: lower quality, and limit choice. So we're going to take

27
00:01:35,280 --> 00:01:37,600
Speaker 1: a close look at that, as is our job, and

28
00:01:37,760 --> 00:01:40,800
Speaker 1: make an independent assessment based on the law and the facts.

29
00:01:40,800 --> 00:01:43,000
Speaker 2: I suspect that's an investigation that could take some time.

30
00:01:43,040 --> 00:01:45,319
Speaker 2: This is a massive and sprawling deal with a lot

31
00:01:45,319 --> 00:01:48,800
Speaker 2: of properties. Attorney General. The critics say the problem with

32
00:01:48,880 --> 00:01:51,400
Speaker 2: this deal, and those who favored the idea of Netflix

33
00:01:51,400 --> 00:01:54,680
Speaker 2: buying it, is that this takes an entire movie studio

34
00:01:55,280 --> 00:01:57,760
Speaker 2: off the table. Is that how you're looking at this

35
00:01:57,800 --> 00:02:01,040
Speaker 2: and what would that mean for California's economy?

36
00:02:01,560 --> 00:02:04,360
Speaker 1: Well, one of the we are looking at that for sure.

37
00:02:04,400 --> 00:02:06,600
Speaker 1: One of the first questions is what is the appropriate

38
00:02:06,640 --> 00:02:09,880
Speaker 1: market at issues the market definition, and one is studio.

39
00:02:10,040 --> 00:02:13,959
Speaker 1: You know it will be a studio market consolidation. There's

40
00:02:14,000 --> 00:02:18,440
Speaker 1: also a streaming service market consolidation here. So there's a

41
00:02:18,440 --> 00:02:21,280
Speaker 1: couple of different markets at issue, and you know, California

42
00:02:21,360 --> 00:02:23,160
Speaker 1: is the home of Hollywood, with the fourth largest economy

43
00:02:23,160 --> 00:02:26,600
Speaker 1: in the world. What could this merger should it go

44
00:02:26,639 --> 00:02:29,320
Speaker 1: through and be approved and get through the regulatory process,

45
00:02:29,360 --> 00:02:32,560
Speaker 1: mean it could mean less choices for consumers, higher prices

46
00:02:32,560 --> 00:02:42,160
Speaker 1: for consumers, a less robust creative output and set of processes.

47
00:02:42,240 --> 00:02:45,919
Speaker 1: It could mean, you know, fewer choices and lower quality.

48
00:02:46,000 --> 00:02:48,560
Speaker 1: So there's a lot at stake here for the forty

49
00:02:48,600 --> 00:02:51,640
Speaker 1: million Californians. But these companies, they're so large, there's going

50
00:02:51,680 --> 00:02:55,160
Speaker 1: to be impacts nationwide and worldwide as well.

51
00:02:55,000 --> 00:02:55,160
Speaker 3: You know.

52
00:02:55,280 --> 00:02:57,880
Speaker 2: So of course, not just studios, not just streaming services,

53
00:02:58,160 --> 00:02:59,079
Speaker 2: it's also news.

54
00:02:59,120 --> 00:03:00,840
Speaker 3: And you start to talking about.

55
00:03:00,880 --> 00:03:04,120
Speaker 2: Information on public areas in the case of CBS or

56
00:03:04,360 --> 00:03:08,720
Speaker 2: otherwise on cable with CNN, do you worry about consolidation

57
00:03:08,960 --> 00:03:12,040
Speaker 2: in that business? Do you need promises that that would

58
00:03:12,040 --> 00:03:12,760
Speaker 2: not take place?

59
00:03:14,040 --> 00:03:16,320
Speaker 1: I do worry about that. I think we all are

60
00:03:16,480 --> 00:03:18,639
Speaker 1: worried about that and should be worried about that. We've

61
00:03:18,639 --> 00:03:22,880
Speaker 1: seen what's happened to our independent, objective news that we

62
00:03:22,919 --> 00:03:27,079
Speaker 1: so value, and we take steps to protect that. So

63
00:03:27,280 --> 00:03:30,880
Speaker 1: that is an important area that we're looking at among

64
00:03:30,919 --> 00:03:34,519
Speaker 1: the many other broader areas, and we haven't gotten ahead

65
00:03:34,520 --> 00:03:37,520
Speaker 1: of ourselves as to what the potential remedy is or

66
00:03:38,240 --> 00:03:41,320
Speaker 1: conditions or you know, whether we think there's no way

67
00:03:41,840 --> 00:03:46,440
Speaker 1: that there could be a set of conditions or remedies,

68
00:03:46,760 --> 00:03:48,480
Speaker 1: or maybe we like it exactly the way it is,

69
00:03:49,040 --> 00:03:51,440
Speaker 1: so we're not prejudging it. But we're looking closely as

70
00:03:51,520 --> 00:03:53,320
Speaker 1: we should, as is our duty and obligation.

71
00:03:53,440 --> 00:03:55,240
Speaker 2: I want to move on to some other topics, but

72
00:03:55,280 --> 00:03:56,720
Speaker 2: do you have a sense of how long it'll take

73
00:03:56,760 --> 00:03:58,040
Speaker 2: before you make that determination?

74
00:03:59,360 --> 00:04:02,240
Speaker 1: Because the two companies, Paramount and Warner Brothers are moving

75
00:04:02,280 --> 00:04:03,880
Speaker 1: so quickly, we're going to have to take some action

76
00:04:04,360 --> 00:04:07,200
Speaker 1: at least to maintain the status quo soon, if that's

77
00:04:07,240 --> 00:04:10,520
Speaker 1: what we decide we need to do, and then we'll

78
00:04:11,280 --> 00:04:16,640
Speaker 1: continue the ongoing investigative process and any other action to follow.

79
00:04:16,680 --> 00:04:19,839
Speaker 1: But we can't let this get too far without some action,

80
00:04:19,960 --> 00:04:22,200
Speaker 1: So you'll probably see something sooner than later.

81
00:04:22,440 --> 00:04:26,600
Speaker 2: Weeks, not months, correct, Great Attorney General, I want to

82
00:04:26,600 --> 00:04:27,599
Speaker 2: ask you about tariffs.

83
00:04:27,880 --> 00:04:29,200
Speaker 3: It was one week ago today.

84
00:04:29,240 --> 00:04:31,200
Speaker 2: Kind of hard to believe that the Supreme Court ruled

85
00:04:31,760 --> 00:04:34,120
Speaker 2: to strike down the President's tariff regime. He's of course

86
00:04:34,200 --> 00:04:37,440
Speaker 2: taken some series of actions since then to try to

87
00:04:37,480 --> 00:04:41,000
Speaker 2: reinstate across the board global tariffs, and he talked about

88
00:04:41,000 --> 00:04:43,320
Speaker 2: this at his State of the Union address this week.

89
00:04:43,400 --> 00:04:43,880
Speaker 3: Let's listen.

90
00:04:45,240 --> 00:04:48,839
Speaker 4: They're a little more complex, but they're actually probably better.

91
00:04:48,960 --> 00:04:51,440
Speaker 4: Congressional action will not be necessary.

92
00:04:51,480 --> 00:04:53,160
Speaker 1: It's already time tested.

93
00:04:52,800 --> 00:04:56,040
Speaker 4: And approved, and as time goes by, I believe the

94
00:04:56,040 --> 00:05:00,040
Speaker 4: tariffs paid for by foreign countries will, like in in

95
00:05:00,120 --> 00:05:05,120
Speaker 4: the past, substantially replaced the modern day system of income tax.

96
00:05:05,960 --> 00:05:07,960
Speaker 2: Of course, that was a loaded statement on its own.

97
00:05:08,000 --> 00:05:10,320
Speaker 2: Attorney General, you called it a tremendous win the way

98
00:05:10,360 --> 00:05:12,560
Speaker 2: the Supreme Court ruled. But if the President is following

99
00:05:12,600 --> 00:05:15,279
Speaker 2: up with three zero one or some other mechanism to

100
00:05:15,680 --> 00:05:19,960
Speaker 2: put more tariffs in place around the world, how does

101
00:05:20,000 --> 00:05:20,839
Speaker 2: anything change.

102
00:05:22,360 --> 00:05:25,640
Speaker 1: Well, let me first say I expected the US Supreme

103
00:05:25,680 --> 00:05:28,080
Speaker 1: Court to decide almost exactly the way they did, having

104
00:05:28,120 --> 00:05:31,200
Speaker 1: been at the argument for the US Supreme Court that

105
00:05:31,240 --> 00:05:34,320
Speaker 1: you know the six' to three decision of the, majority

106
00:05:34,400 --> 00:05:36,840
Speaker 1: as well as the reasons it was basically tracked the

107
00:05:36,880 --> 00:05:40,359
Speaker 1: reasons we advanced in our briefing to THE Us Supreme.

108
00:05:40,400 --> 00:05:44,520
Speaker 1: Court of, Course trump is absolutely dead, set even after

109
00:05:44,560 --> 00:05:47,960
Speaker 1: suffering this embarrassing loss on his centerpiece economic, policy to

110
00:05:48,040 --> 00:05:52,320
Speaker 1: continue to try to raise prices For, americans. Unfortunately and

111
00:05:52,360 --> 00:05:55,880
Speaker 1: so our role here is to see if his current

112
00:05:55,920 --> 00:05:59,160
Speaker 1: tariffs are lawful or. Not and we're. Looking we're looking

113
00:05:59,160 --> 00:06:03,560
Speaker 1: with other states. Concerned they are global tariffs that he

114
00:06:03,600 --> 00:06:06,240
Speaker 1: has imposed based on a statute for which it does

115
00:06:06,240 --> 00:06:08,920
Speaker 1: not necessarily appear that he's met their. Requirements there are

116
00:06:09,000 --> 00:06:12,599
Speaker 1: requirements before you can impose those those. Tariffs there needs

117
00:06:12,600 --> 00:06:15,320
Speaker 1: to be a balance of payments. Deficit there's also limits

118
00:06:15,320 --> 00:06:19,840
Speaker 1: about how, long how high they can be the tariffs,

119
00:06:19,880 --> 00:06:23,440
Speaker 1: themselves and how long their duration can. Last so there

120
00:06:23,480 --> 00:06:26,640
Speaker 1: are limits set By. Congress and right now we have

121
00:06:26,680 --> 00:06:30,679
Speaker 1: some major red flags that have been raised around whether

122
00:06:30,839 --> 00:06:31,920
Speaker 1: those requirements are being met.

123
00:06:31,920 --> 00:06:33,200
Speaker 3: Here, well i'll say you it's been pretty.

124
00:06:33,200 --> 00:06:36,200
Speaker 2: Amazing we're going to have to get some more Lawyers attorney.

125
00:06:36,279 --> 00:06:38,479
Speaker 3: General since the, ruling.

126
00:06:38,279 --> 00:06:41,560
Speaker 2: More than one hundred companies of file new lawsuits to

127
00:06:41,640 --> 00:06:43,039
Speaker 2: try to get refunds.

128
00:06:43,080 --> 00:06:44,479
Speaker 3: Here AND i mean these are some big.

129
00:06:44,560 --> 00:06:47,640
Speaker 2: Names you already knew About, costco you Had, FedEx Dice

130
00:06:47,720 --> 00:06:50,600
Speaker 2: In Dollar, General, bousha Lom, Brooks. Brothers this is quite the,

131
00:06:50,720 --> 00:06:54,120
Speaker 2: list knowing that the justices were silent on. Refunds is

132
00:06:54,120 --> 00:06:55,560
Speaker 2: this what we're going to do for the next three.

133
00:06:55,600 --> 00:06:59,600
Speaker 1: YEARS i, mean it should be done quickly and. Expeditiously

134
00:07:00,279 --> 00:07:04,640
Speaker 1: trump unlawfully raised costs for these, companies and these costs

135
00:07:04,680 --> 00:07:08,080
Speaker 1: were passed on To. Americans they deserve a refund with, interest,

136
00:07:08,120 --> 00:07:10,240
Speaker 1: period full. Stop you should look it to them as

137
00:07:10,280 --> 00:07:13,000
Speaker 1: soon as. Possible and you, know he shouldn't fight it in.

138
00:07:13,040 --> 00:07:15,480
Speaker 1: Court he was deemed to be wrong by the highest

139
00:07:15,480 --> 00:07:17,640
Speaker 1: court in the, land a court where he appointed three.

140
00:07:17,760 --> 00:07:20,239
Speaker 1: Justices two of those justices where in the majority opinion against,

141
00:07:20,280 --> 00:07:22,960
Speaker 1: him because they're following the, law and because he's done

142
00:07:22,960 --> 00:07:25,880
Speaker 1: something so clearly. Unlawful the authority he cited gave him

143
00:07:25,880 --> 00:07:29,760
Speaker 1: no right to impose any. Teriffs they have never that

144
00:07:29,880 --> 00:07:33,400
Speaker 1: authority never used the word tariffs in its statutory, language

145
00:07:33,400 --> 00:07:35,640
Speaker 1: and it was never used in nearly its fifty year

146
00:07:35,640 --> 00:07:38,480
Speaker 1: existence to impose tariffs. Before, so, yeah he did something.

147
00:07:38,480 --> 00:07:42,080
Speaker 1: Unlawfully he did something. Wrong he victimized these Companies americans

148
00:07:42,080 --> 00:07:44,320
Speaker 1: by raising. Prices he should make it right by providing

149
00:07:44,360 --> 00:07:45,280
Speaker 1: perstitution and refunds.

150
00:07:45,280 --> 00:07:46,880
Speaker 2: Immediately, Well i'll tell you we'd like to stay in

151
00:07:46,920 --> 00:07:48,520
Speaker 2: touch with you on both of these. Issues come back

152
00:07:48,520 --> 00:07:49,880
Speaker 2: and talk to, us and you decide what to do

153
00:07:50,400 --> 00:07:53,560
Speaker 2: With Warner. Brothers Attorney General Rob, Bonta. California we thank

154
00:07:53,600 --> 00:07:54,600
Speaker 2: you for the insights