California Attorney General Rob Bonta has postponed a planned meeting with Paramount Skydance regarding a potential settlement in the state’s antitrust lawsuit against the company’s $110 billion acquisition of Warner Bros. Discovery. On Monday morning, Bonta confirmed the cancellation, stating that Paramount was “playing games.”
Bonta expressed his preference for resolving issues through discussions rather than legal proceedings. He criticized Paramount for allegedly leaking details of previous settlement discussions, questioning the company’s sincerity in negotiating in good faith.
“I prefer to resolve disputes in the boardroom, not the courtroom. As I’ve also said, if the opposing party in litigation wants to meet in good faith to make a sincere effort to resolve the case, we’ll meet,” Bonta stated.
Paramount, in response, expressed agreement with Bonta’s concerns about the public nature and potential misreporting of the merger discussions. A spokesperson for Paramount clarified the company had not been responsible for any leaks regarding confidential talks.
The recent exchange followed a Wall Street Journal article disclosing topics from a recent meeting between the two parties. This added another layer of complexity to an ongoing corporate saga that has captivated Hollywood in recent months.
A lawsuit challenging the merger, filed by twelve state attorneys general and the Writers Guild of America, asserts that the deal breaches federal antitrust laws and threatens competition in theatrical film releases, top-grossing movies, and basic cable television distribution. Paramount disputes these allegations, asserting that the merger will enhance competition and production in both film and television.
Paramount has agreed to delay the merger’s completion until the antitrust dispute is settled or June 1, 2027, whichever comes first. Judge Araceli Martínez-Olguín of the U.S. District Court for the Northern District of California has scheduled a trial on the matter for early March.
Despite the lawsuit, Paramount has received merger clearance from both the Department of Justice and numerous global regulators. The proposed merger, set to be led by David Ellison, son of Oracle mogul Larry Ellison, would consolidate two major movie studios, two streaming platforms, several cable channels, and major news organizations like CBS News and CNN.
There are rumors that David Ellison threatened to relocate Paramount from California if Bonta did not engage in settlement discussions. Additionally, if the merger is not finalized by October 1, Paramount faces a daily penalty of $7 million, equivalent to $650 million each quarter, payable to Warner Bros. shareholders.
Political leaders in California advocate for a resolution to the case, citing concerns over impacts on workers, productions, and the broader entertainment industry. Los Angeles Mayor Karen Bass emphasized the detrimental effects of ongoing uncertainty. Meanwhile, California Gov. Gavin Newsom, according to reports, worries that the antitrust dispute might negatively affect employment in the state.
In this antitrust effort, California is supported by Democratic attorneys general from Arizona, Colorado, Connecticut, Massachusetts, Minnesota, Nevada, New Jersey, New Mexico, New York, Oregon, and Washington.