Paramount and Rob Bonta to Meet Monday Over Merger Lawsuit Settlement

Paramount and California Attorney General Rob Bonta's office will meet on Monday to discuss a possible settlement of Bonta's antitrust lawsuit against the David Ellison-led media conglomerate's planned $110 billion merger with Warner Bros. Discovery, a source close to the situation told TheWrap. The talks come amid preparations for a March trial involving Bonta, 11 other state AGs, and the Writers' Guild of America.

Starting October 1, Ellison must begin paying a $0.25 per share fee, which would amount to $650 million quarterly or $7 million daily until the deal closes. Judge Araceli Martinez-Olguin requested two potential magistrates to oversee mediation by next Wednesday, though it remains uncertain whether the talks will result in a settlement.

Paramount's representatives have declined to comment, while Bonta's office has not yet responded to TheWrap's request for comment. Despite calling for a settlement, Ellison's CEO threatened to relocate Paramount's operations out of California if the attorney general fails to negotiate by the October 1 deadline. Bonta has labeled this threat as "blackmail," but has expressed openness to settlement discussions, favoring structural remedies over behavioral ones such as Ellison's promise of 30 theatrical film releases annually.

Notable supporters of the merger include California Governor Gavin Newsom, Los Angeles Mayor Karen Bass, and various industry leaders. However, over 5,000 actors, including Jane Fonda and Mark Ruffalo, have opposed the merger, as have SAG-AFTRA, the Hollywood Teamsters union, and some consumer groups. The merger's closing deadline remains June 4, 2027, with a provisional five-day extension until June 1 if the trial outcome is favorable.