California Attorney General Rob Bonta canceled a scheduled meeting with Paramount on Monday, aimed at discussing a possible settlement regarding the state’s antitrust lawsuit against the company’s $110 billion acquisition of Warner Bros. Discovery. In a statement, Bonta accused Paramount of ‘playing games,’ indicating a preference for resolving conflicts through negotiations rather than litigation.
Bonta expressed willingness to meet if both parties show sincere efforts to settle the case, but accused Paramount of leaking details from previous settlement talks held on Friday, suggesting a lack of good faith from the media company. In response, Paramount’s spokesperson denied being the source of the leaks, aligning with Bonta’s concerns about misinformation surrounding the deal.
This latest development adds complexity to a corporate saga drawing intense interest in Hollywood. Last month, twelve state attorneys general and the Writers Guild of America sued to challenge the merger of Paramount with Warner Bros., claiming the deal violates federal antitrust laws and threatens competition in wide-release theatrical films, top-grossing movies, and basic cable TV distribution.
Bonta accused Paramount of leaking ‘the alleged substance of settlement discussions’ that were held on Friday.
Paramount has countered with a dismissal of these claims, arguing that the merger will enhance economic competition and increase production across the film and television sectors. The company has agreed to stall the merger until the antitrust case is settled or until June 1, 2027. Judge Araceli Martínez-Olguín will preside over an antitrust trial scheduled for early March.
Paramount has already received approval from the Department of Justice and regulatory clearances from over 60 regions globally, including Australia, China, and the EU. Upon merger completion, David Ellison would lead the consolidated entity, which would integrate several movie studios, streaming platforms, cable channels, CBS News, and CNN.
Ellison has reportedly threatened to relocate Paramount’s headquarters from California unless settlement talks with Bonta commence, according to a source present at a confidential meeting earlier in the month. Failure to close the deal by October 1 would incur a $7 million daily fee to Warner Bros. shareholders, approximately $650 million each quarter.
The lawsuit has sparked political reactions, with leaders urging both parties to resolve the legal dispute swiftly. Los Angeles Mayor Karen Bass emphasized the negative impact of uncertainty on workers, productions, and the industry’s future. Meanwhile, according to the Wall Street Journal, Governor Gavin Newsom voiced concerns that blocking the merger might adversely affect employment in California.
California joins Democratic attorneys general from Arizona, Colorado, Connecticut, Massachusetts, Minnesota, Nevada, New Jersey, New Mexico, New York, Oregon, and Washington in the antitrust challenge.
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