* AG says his office has central role in protecting

Hollywood jobs

* Behavioral remedies not always adequate to protect

competition, AG says

* Paramount has said deal will create jobs

By Jody Godoy and Nathan Frandino

June 5 (Reuters) - California Attorney General Rob Bonta

will soon decide whether to sue to block Paramount's

$110 billion acquisition of Warner Bros, he told Reuters

in an interview, adding that in general he views any corporate

promises to address antitrust concerns as better when backed up

by potential divestitures.

Bonta's office has been reviewing the deal for potential

violations of U.S. antitrust law, as movie theater owners,

Hollywood actors and others have expressed concerns that it

would decrease competition across the industry, leading to lower

wages, higher prices and fewer options for consumers and content

buyers.

Antitrust authorities in Europe are set to decide by early July

whether to clear the deal, while the U.S. Department of Justice

is likely to reach a decision soon, according to a source

familiar with the matter. The deal could close once it clears

those reviews, putting time pressure on Bonta's office, which is

seen as the most likely enforcement agency to challenge the

deal.

"There's not a lot of time left before we will need to act

if that's what we decide to do," Bonta said in an interview in

Oakland, California.

The combination of two major U.S. film studios has elicited

angst in Hollywood over the potential for fewer productions.

Bonta said his office has heard from many workers in the

industry and that their concerns have raised "even more red

flags."

Antitrust enforcers can challenge mergers that would

significantly harm competition, including competition among

employers for specialized labor.

"We think we have a central role in being able to protect

jobs in Hollywood with respect to the Paramount-Warner Brothers

proposed merger," Bonta said.

A Paramount spokesperson said the company has "every

economic incentive" to expand production after the merger in

order to grow streaming service subscriptions. Paramount CEO

David Ellison has vowed that the combined company will release

30 movies per year ​in theaters. The company views theatrical

releases as key to marketing its streaming offerings, it

recently said in court papers.

Asked whether Paramount should be required to spin off any

parts of its business to protect competition, Bonta said that

behavioral remedies, where companies agree to take particular

actions, are not always adequate.

"Can they be part of a solution? Maybe. Should they be

backed, if they're even pursued at all, by a structural remedy

consequence if they're not adequate? I'd say so. That's kind of

the way I'm thinking about it," he said.

Paramount Chief Legal Officer Makan Delrahim said in a

statement that the company is "always prepared to remedy

legitimate and articulated violations of the antitrust laws,"

but that it believes the deal presents none.

STATES TEAM UP TO TAKE ON ANTITRUST

California's Department of Justice has the largest antitrust

division in the country, with just under 50 people. And the

state is adding eight more attorneys this year along with eight

support staff, Bonta said. California Governor Gavin Newsom has

proposed adding $14.3 million to Bonta's budget for antitrust

work.

A number of other states are talking to California about a

joint challenge to the deal, two people familiar with the matter

said.

However, there was no indication that the states have come

to an agreement on their approach. The potential costs involved

if California hires an outside lawyer could be a factor for

states, the sources said.

"The full range of options are on the table and available and

are fully resourced, no matter what we decide," Bonta said when

asked if the state was prepared to take action on its own.

California has worked with both Democratic and Republican-led

states on major antitrust cases in the past, including a recent

win against Live Nation.

Working together is more important now that the Trump

administration is "picking winners and losers based on who their

friends are," Bonta said.

But antitrust cases often cost tens of millions of dollars,

raising questions about how many major lawsuits the states can

bring without their federal partners.

"We will find a way, either we'll go back and ask for more

money, we'll all pitch in enough resources, we'll hire outside

counsel, whatever it takes," Bonta said. "I think the people of

our states and the people of this country want that, and I know

they deserve that."