California Attorney General Cancels Meeting with Paramount Over Antitrust Suit

California’s Attorney General, Rob Bonta, canceled a scheduled meeting with Paramount Skydance on Monday. The meeting was intended to discuss a potential settlement of the state’s antitrust lawsuit aimed at halting the $110 billion takeover of Warner Bros. Discovery by Paramount.

Bonta released a statement explaining his decision to cancel the meeting. He accused Paramount of “playing games” and expressed a preference for resolving disputes through boardroom discussions rather than in court. Bonta asserted that Paramount misrepresented settlement discussions that took place on Friday, which he saw as a sign of bad 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.

In response to inquiries for further comments, a Paramount spokesperson emphasized that the company shares Bonta’s concerns about public discussions and misreporting. The spokesperson insisted that Paramount was not responsible for leaks concerning confidential discussions with Bonta’s office.

This exchange adds another chapter to an ongoing corporate saga that has captured Hollywood’s attention for months. The lawsuit was filed last month by twelve state attorneys general and the Writers Guild of America. They argue that the merger of Paramount and Warner Bros., two leading entertainment conglomerates, violates federal antitrust laws and threatens competition in three key markets: wide-release films, top-grossing movies, and basic cable TV distribution.

Paramount firmly disputes these claims, asserting that the merger would enhance competition and boost production output across film and television sectors. The company has agreed to put the merger on hold until the antitrust challenge is resolved or June 1, 2027, whichever is sooner. The case is overseen by Judge Araceli Martínez-Olguín of the U.S. District Court for the Northern District of California, with a trial set for early March.

Paramount has already secured approval from the Department of Justice and regulatory bodies in over 60 territories globally, including Australia, China, and the European Union. The merger would create a powerful media entity headed by David Ellison, the son of Oracle’s Larry Ellison. The new company would comprise two movie studios, streaming platforms, cable channels, and top news organizations like CBS News and CNN.

According to a source from a closed meeting earlier this month, Ellison has warned of relocating Paramount’s headquarters out of California unless settlement talks begin.

The merger agreement specifies that if the deal does not close by October 1, Paramount faces a $7 million daily fee to Warner Bros. shareholders, amounting to about $650 million each quarter.

California political leaders have encouraged a resolution to the legal dispute. Los Angeles Mayor Karen Bass described the ongoing uncertainty as detrimental to workers, productions, and the industry’s future.

California Governor Gavin Newsom reportedly shares concerns that blocking the deal could affect state employment. Newsom’s office declined to comment on reports based on anonymous sources or unverified information.

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