California AG Cancels Settlement Talks with Paramount Amid Merger Dispute

California Attorney General Rob Bonta announced that the scheduled settlement discussion with Paramount Skydance Corp. for the proposed acquisition of Warner Bros. Discovery was cancelled. Bonta said Paramount had leaked and misrepresented details from an earlier private meeting, demonstrating a lack of good-faith negotiation. The cancellation halted the only planned preliminary dialogue between the state’s antitrust coalition and Paramount.

Variety Magazine

Paramount’s CEO David Ellison seeks to combine Paramount with Warner Bros. Discovery in a transaction valued at roughly $110 billion (some reports cite $111 billion). A coalition of 12 state attorneys general, led by California, filed an antitrust lawsuit on July 13 alleging the deal would give the combined entity excessive control over cable television and movie production. The states have demanded “structural remedies,” typically requiring divestiture of certain assets.

PSKY, WBD Merger: Retail Says Ellison ‘Holds The Cards’ As High-Stakes Talks With Bonta Take Center Stage

• July 13 – Twelve states file antitrust suit.

PSKY, WBD Merger: Retail Says Ellison ‘Holds The Cards’ As High-Stakes Talks With Bonta Take Center Stage

• August 21 – Preliminary meeting between Bonta’s office and Paramount.

Variety Magazine

• August 24 – Planned settlement meeting cancelled by Bonta.

Variety Magazine

• September 30 – Paramount could incur a “ticking fee” of roughly $7 million per day if the merger remains incomplete.

California Attorney General Halts Paramount-WBD Merger Talks

• March 2, 2027 – Federal judge set a 12-day antitrust trial.

Deadline Hollywood

• Proposed acquisition value: $110 billion (some outlets report $111 billion).

California Attorney General Halts Paramount-WBD Merger Talks

• Potential fee: $7 million per day after September 30.

Deadline Hollywood

• Estimated job impact: about 4,500 TV and film jobs could be lost if the merger stalls.

Deadline Hollywood

• Trial date: March 2, 2027.

Deadline Hollywood

• Governor Gavin Newsom warned that the dispute could damage the state’s reputation and urged a swift resolution.

New York Times

• Los Angeles Mayor Karen Bass said the dispute has already stalled productions and caused job losses, calling for an urgent settlement.

Breitbart

• Gubernatorial candidate Xavier Becerra expressed a preference for settling the lawsuit.

New York Times

Local industry groups and city officials note the merger’s potential to disrupt Hollywood’s production pipeline. The Los Angeles County Department of Economic Opportunity warned that the combined company’s debt could erase billions in wages and reduce state tax revenue by $547 million.

Deadline Hollywood

• Deal valuation: Sources differ between $110 billion and $111 billion.

Deadline Hollywood

• Fee start date: Some reports state the fee begins September 30, others cite October 1.

Deadline Hollywood

• Settlement terms: While Bonta emphasizes “structural remedies,” the precise assets Paramount would need to divest remain unspecified.

Variety Magazine

• “Not only did Paramount leak the alleged substance of settlement discussions, but they misrepresented these discussions, demonstrating a lack of good faith,” — Attorney General Rob Bonta

Variety Magazine

• No further settlement meetings have been scheduled.

Variety Magazine

• The antitrust trial set for March 2, 2027 will proceed unless the parties reach a resolution.

California Attorney General Halts Paramount-WBD Merger Talks

• If the merger remains incomplete after September 30, Paramount faces daily fees that could total hundreds of millions of dollars.

Mediaite