California Governor Gavin Newsom has remained notably silent on Paramount’s proposed $110 billion merger with Warner Bros. Discovery, despite significant public debate and legal challenges. The deal, which would reshape the media landscape, has faced scrutiny, including a lawsuit filed earlier this month by California Attorney General Rob Bonta and a coalition of other state attorneys general aiming to block the merger on antitrust grounds.

Sources close to Newsom’s office suggest that his lack of public commentary is deliberate. According to one insider, Newsom tends to avoid taking a definitive public stance on issues unless he fully supports them and is disinclined to engage in controversy amid other political priorities. Another source indicated that Newsom does not view the merger as a catastrophic development and has been somewhat influenced by proponents who argue that the deal’s risks have been overstated by opponents.

The lawsuit, filed on July 13, includes 11 states and has since gained support from the Writers Guild of America. It contends that the merger could reduce competition and harm consumers. However, Newsom reportedly was surprised by the timing of the legal action and has opted for a cautious approach rather than an outright denunciation.

In an earlier interview in June on journalist Aaron Parnas’ Substack podcast, Newsom expressed support for a “fair independent process” to evaluate the merger’s advantages and disadvantages but did not explicitly endorse or oppose the deal.

Further complicating the situation are the Ellisons, a prominent family with close ties to the merger. David Ellison, Paramount Skydance’s CEO, and his father Larry Ellison, Oracle’s co-founder and a major financier behind the acquisition, have significant stakes in the transaction. Reports have emerged that if the legal challenge progresses, Paramount Skydance’s leadership is considering relocating the company’s incorporation outside of California, potentially shifting operations away from the state.

As Newsom prepares to leave office in January and positions himself for a possible 2028 presidential campaign, he appears to be carefully managing where he expends his political influence. His restrained public posture on this high-profile merger underscores a strategic calculation amid a complex mix of legal, economic, and political factors surrounding the deal.