California AG Rob Bonta Halts Paramount-Warner Settlement Talks Over Alleged Leaks

California Attorney General Rob Bonta cancelled a scheduled meeting with Paramount Skydance on Monday after confidential settlement discussions were reportedly leaked to the press. Bonta announced on Tuesday that “we don’t have anything scheduled” with the studio and warned that any future talks would require Paramount to stop the leaks and engage in “good-faith” negotiations. The dispute centers on Bonta’s antitrust suit seeking to block Paramount’s proposed $110 billion acquisition of Warner Bros. Discovery.

New York PostVariety MagazineDeadline Hollywood? ‘Sleep in the Bed They Made’: Bonta Fires Back as Paramount Talks Collapse The WrapNew York ObserverThe Wrap

The lawsuit was filed in July by a coalition of twelve state attorneys general, including Bonta, and the Writers Guild of America. It alleges that the merger would give Paramount excessive control in three markets: basic-cable licensing, wide-release theatrical distribution, and blockbuster film distribution. Federal antitrust regulators and 68 foreign competition agencies have cleared the deal, but the state case remains the last obstacle. A federal judge issued a temporary restraining order in August, delaying the closing until the antitrust trial scheduled for March 2, 2027 in Oakland.

Deadline Hollywood

• Proposed purchase price: $110 billion.

The Wrap

• “Ticking” fee: $7 million per day owed to Warner Bros. Discovery shareholders beginning October 1, 2026.

The Wrap

• Estimated job impact: a Los Angeles County study projects the merger could eliminate 4,500 film and TV jobs and threaten 5,800 indirect jobs, with a total economic loss of roughly $4 billion and $547 million in tax revenue.

The Wrap

• Trial date: March 2, 2027 (scheduled).

Deadline Hollywood

Bonta reiterated that settlement talks are contingent on Paramount halting the alleged leaks and presenting “robust structural remedies”—such as divesting a significant portion of basic-cable assets and keeping the two studios’ operations separate. He dismissed Paramount’s pledge to release 30 films per year as unenforceable “behavioral” promises.

Variety Magazine

Paramount’s spokesperson denied being the source of the leaks, expressed “hopeful” readiness to continue “good-faith discussions,” and reiterated a willingness to consider “structural remedies” without specifying details.

Variety Magazine

U.S. District Judge Araceli Martínez-Olguín has not yet imposed a bond on Paramount, and the parties remain on opposite sides of the settlement question.

Deadline Hollywood

Iowa Attorney General Brenna Bird has publicly challenged Bonta’s approach, arguing that California’s suit raises costs nationwide and that the merger would foster competition. — q7. Bird also warned that the daily ticking fee would cost Paramount roughly $7 million per day while the case drags on — q9.

The Wrap

Sources differ on whether settlement talks are currently scheduled. This discrepancy reflects divergent reporting on the status of negotiations and on whether Bonta has formally closed the door to future talks.

Deadline Hollywood

• “They wanted to have the settlement discussions, and we are happy to hear them out,” — q3

Deadline Hollywood

• “As soon as Paramount stops playing games and engages sincerely, my office is happy to meet again,” — q4

New York Observer

The antitrust trial is set for March 2, 2027 in Oakland. The daily ticking fee continues to accrue, adding financial pressure on Paramount as the case proceeds.

New York Observer