California Attorney General Cancels Meeting Over Paramount Merger Dispute

California Attorney General Rob Bonta canceled a Monday meeting with Paramount Skydance aimed at discussing a settlement for the state’s antitrust lawsuit. The lawsuit seeks to block Paramount’s $110 billion acquisition of Warner Bros. Discovery.

Bonta, in a statement, accused Paramount of ‘playing games’ and emphasized his preference to resolve disputes in a boardroom setting. He noted, ‘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 alleged that Paramount misrepresented the substance of previous settlement discussions, signifying a lack of good faith. Paramount’s spokesperson acknowledged concerns regarding public discussions and misinformation around the deal. They stated that they were not the source of any leaks from confidential talks.

The conflict follows a Wall Street Journal article published Saturday detailing conversations from Friday’s meeting, adding to the intrigue of Hollywood’s ongoing corporate saga.

Twelve state attorneys general and the Writers Guild of America filed a lawsuit last month against Paramount’s merger with Warner Bros., arguing it violates federal antitrust laws. The states argue it threatens competition in markets such as wide-release films and basic cable distribution.

Paramount rejects these claims, stating the merger will enhance competition and production output. The company agreed to freeze its merger until the antitrust challenge resolves or until June 1, 2027, whichever comes first.

Judge Araceli Martínez-Olguín of the U.S. District Court for Northern California set an antitrust trial for early March. Paramount has received clearance from the Department of Justice and regulatory approvals from over 60 global territories.

David Ellison, son of Oracle founder Larry Ellison, is set to lead the combined corporation. It would include two movie studios, streaming platforms, cable channels, CBS News, and CNN.

Ellison has indicated a potential move for Paramount’s headquarters out of California if settlement talks do not begin with Bonta. If the merger does not close by October 1, Paramount must pay Warner Bros. shareholders a daily ticking fee of $7 million, or $650 million quarterly.

Political leaders in California have urged a resolution to avoid industry uncertainty. Los Angeles Mayor Karen Bass emphasized the impact on workers, productions, and the industry’s future.

California Governor Gavin Newsom expressed concern about potential employment impacts if the deal fails, though his office avoided commenting on unverified reports.

California is joined in the antitrust challenge by the Democratic attorneys general from Arizona, Colorado, Connecticut, Massachusetts, Minnesota, Nevada, New Jersey, New Mexico, New York, Oregon, and Washington.