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.”
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.
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