California Attorney General Ends Meeting Over Media Merger Dispute

California’s Attorney General Rob Bonta canceled a planned meeting with Paramount Skydance, originally set for Monday, to discuss a potential settlement of the state’s antitrust lawsuit. This lawsuit aims to prevent Paramount’s $110 billion acquisition of Warner Bros. Discovery.

Bonta, in a statement, mentioned he withdrew from the meeting, accusing Paramount of “playing games.” He stated his preference for resolving disputes amicably in a boardroom setting rather than through litigation. Bonta emphasized his willingness to meet if the opposing party exhibits good faith in resolving the case.

Bonta also accused Paramount of leaking the substance of previous settlement discussions, held last Friday, and misrepresenting those talks. The meeting was called off because of this perceived lack of good faith.

A Paramount spokesperson responded, sharing Bonta’s concerns about the public discussions and misinformation surrounding the deal. The spokesperson assured that Paramount was not responsible for leaking any confidential conversations with the Attorney General’s office.

The Attorney General’s cancellation is the latest development in a corporate saga captivating Hollywood. Twelve state attorneys general and the Writers Guild of America had filed a lawsuit last month, challenging the merger between Paramount and Warner Bros.

The lawsuit claims the merger violates federal antitrust laws and poses a risk to economic competition in theatrical film releases, top-grossing movies, and basic cable television distribution. Paramount dismissed these claims, arguing that the merger would boost competition and production output in film and television.

To address antitrust concerns, the company agreed to freeze the merger until either the lawsuit’s resolution or June 1, 2027. Judge Araceli Martínez-Olguín with the U.S. District Court for the Northern District of California scheduled an antitrust trial for early March.

Paramount has already secured approval from the Department of Justice and regulatory authorities in over 60 territories worldwide, including Australia, China, and the European Union. The merged corporation would fall under the leadership of David Ellison, son of Oracle mogul Larry Ellison.

The broader entity would include movie studios, streaming platforms, cable channels, and news organizations like CBS News and CNN. David Ellison has reportedly threatened to move Paramount from its California headquarters unless settlement talks proceed.

If the deal remains unclosed by October 1, Paramount will owe Warner Bros. shareholders a $7 million daily fee, amounting to roughly $650 million each quarter.

California political leaders, like Los Angeles Mayor Karen Bass, have urged both parties to reach a resolution, citing impacts on workers and the industry’s stability. Governor Gavin Newsom has expressed concerns over the antitrust challenge, suggesting possible negative effects on employment if the merger is blocked.

In the antitrust lawsuit, California collaborates with Democratic attorneys general from Arizona, Colorado, Connecticut, Massachusetts, Minnesota, Nevada, New Jersey, New Mexico, New York, Oregon, and Washington.