California AG scraps Paramount settlement talks, accusing company of bad faith

Paramount and the plaintiffs suing to block its acquisition of Warner Bros. Discovery (WBD) are set to meet next week for settlement talks, despite remaining far apart in their positions. California Attorney General Rob Bonta has stated that any settlement must include robust structural remedies that would alter the composition of the media merger, which Paramount may find unappealing and thus unproductive.

The merger, which would unite Paramount's film and television operations with WBD's assets, including CNN, HBO, and Discovery, has drawn opposition from a coalition of Democratic state attorneys general and the Writers Guild of America, who argue that it would violate antitrust law and harm Hollywood. Paramount has insisted that the deal is pro-competitive and that the plaintiffs' opposition is driven by political concerns.

Bonta, however, has dismissed claims that the opposition is motivated by political considerations and has called for "good faith" discussions. The protracted trial, which will incur costs starting October 1, has prompted Paramount to push for a settlement. Some California politicians, including outgoing Governor Gavin Newsom, have called for a pre-trial resolution, citing Paramount's potential relocation of operations out of California.

Bonta has denounced such claims as "blackmail." Despite reports that Bonta's office might meet with Paramount representatives to discuss a settlement, Bonta reiterated his preference for resolving disputes through boardroom negotiations rather than the courtroom.