California attorney general Rob Bonta has cancelled a planned meeting with Paramount to discuss a possible settlement of the antitrust case aimin
California attorney general Rob Bonta has cancelled a planned meeting with Paramount to discuss a possible settlement of the antitrust case aiming to block the proposed $111bn merger with Warner Bros Discovery (WBD).
In a statement to the New York Times, Bonta said: “Not only did Paramount leak the alleged substance of settlement discussions, but they misrepresented these discussions, demonstrating a lack of good faith. As soon as Paramount stops playing games and engages sincerely, my office is happy to meet again.”
Later on Monday a Paramount spokesperson said, “We share AG Bonta’s concerns about the public discussions and misreporting that has surrounded this deal. As we have assured the Attorney General’s office, Paramount has not been the source of the leaks of any of our confidential discussions with the AG’s office.”
The statement continued, ”We remain hopeful and stand ready to continue good faith discussions to resolve the Attorneys General suit and move forward with our plans for increased competition and increased output to the benefit of the talent and entertainment workers.”
Bonta and 11 other state attorneys general, alongside the Writers Guild Of America (WGA), filed a motion to block the deal last month, claiming it is anti-competition. The antitrust trial is scheduled for March 2, 2027.
In response, Paramount head David Ellison threatened to start moving Paramount out of California in October should the lawsuit not be settled.
In recent days, there has been political pressure for both sides to settle. Outgoing California governor Gavin Newsom said on Friday: “I think there’s some universal sentiment there, if that’s possible.” Los Angeles mayor Karen Bass has called for a “swift and urgent resolution” to the lawsuit.
A ticking fee agreed on by Ellison and WBD CEO David Zaslav kicks in after September 30, the date by which corporations were targeting the closure of the transaction. The fee would see Paramount required to pay WBD shareholders approximately $7m a day, or $650m a quarter.
