Paramount and California Officials Meet for Settlement Talks

Representatives for Paramount Skydance and California Attorney General Rob Bonta's office are scheduled to meet Monday to negotiate a potential resolution to an antitrust lawsuit blocking Paramount's $110 billion merger with Warner Bros. Discovery.

Bonta led a coalition of 12 state attorneys general in filing the lawsuit in July, seeking to prevent the transaction on grounds that combining the two media giants would severely stifle competition across the entertainment industry.

State regulators assert that merging two of Hollywood's five major film studios would grant the single entity control over approximately 27 percent of the wide-release theatrical movie market and more than 30 percent of anticipated top-grossing theatrical releases.

Opponents, including the Writers Guild of America and notable Hollywood actors, contend that the deal would trigger widespread industry job losses, while state officials argue the consolidation will harm basic cable distributors, movie theaters, and consumers through reduced content and inflated prices.

Bonta publicly addressed the antitrust litigation and expressed his stance on potential negotiations during a television broadcast.

"The unlawful merger of these two entertainment behemoths would lead to higher prices, lower quality, and less content for film and television, harming movie theaters, basic cable distributors, and ultimately, audiences on every sofa and movie theater seat in the U.S.," said Bonta, California Attorney General.

Recent calls from California Governor Gavin Newsom, Los Angeles Mayor Karen Bass, and the Directors Guild of America have increased pressure on both parties to negotiate an agreement before proceeding to trial.

"We do prefer to resolve cases in the boardroom instead of the courtroom," said Bonta, California Attorney General.

The state official emphasized that his legal team remains strictly focused on addressing market concentration issues raised in the state complaint during any settlement discussions.

"[Paramount] wanted to talk about everything except for what this case is about," said Bonta, California Attorney General.

State prosecutors maintain that past settlement discussions were hindered by disagreement over the scope of the dispute.

"They want to talk about the streaming market, which we don't allege in our complaint. They want to talk about CNN, which is not a focus of our complaint. They want to talk about the foreign regulators," said Bonta, California Attorney General.

The Attorney General reiterated the core parameters necessary for any discussions to progress effectively.

"We want to talk about the three markets that we set forth in our complaint, where we think there's antitrust violation," said Bonta, California Attorney General.

Paramount and Warner Bros. Discovery have rejected the antitrust claims, maintaining that the merger will bolster competition and produce at least 30 theatrical films annually while preserving both historical studios.

Although the U.S. Department of Justice cleared the acquisition in June and European regulators approved it in July, a court stipulation bars the companies from closing the transaction until at least five days after a ruling or June 1, 2027.

U.S. District Judge Araceli Martínez-Olguín has ordered a 12-day trial starting March 2, 2027, leaving Paramount subject to a potential $650 million quarterly ticking fee payable to Warner Bros. Discovery shareholders if the acquisition remains unclosed after September 30, along with a $7 billion breakup fee if the deal fails.