California cancels talks with Paramount over Warner Bros deal

On August 24, California Attorney General Rob Bonta canceled a scheduled meeting with Paramount Skydance representatives to discuss settlement talks regarding the state's lawsuit against the proposed acquisition of Warner Bros. Discovery by Paramount. The meeting was set to take place on Monday. Paramount has been advocating for a settlement, as the ongoing lawsuit could result in significant fees and costs if it proceeds to trial in March.

Bonta and his partner states have secured crucial rulings, providing them with leverage in potential settlement negotiations.

Bonta expressed dissatisfaction with Paramount, accusing them of leaking details of a meeting held on Friday and behaving in bad faith. He alleged that Paramount not only disclosed the alleged substance of the settlement discussions but also misrepresented them, indicating a lack of good faith. Bonta further stated that his office met with Paramount on Friday, but they must cease their "games" and engage sincerely for the office to meet again.

Paramount has remained uncooperative, declining to comment when asked for a spokesperson's statement. Bonta has shown openness to settling cases, but he has also emphasized the importance of structural remedies, such as divesting part of a business, over companies merely promising to take certain actions. The CEO of Paramount Skydance, David Ellison, has pledged to release 30 movies annually and keep them exclusively in theaters for 45 days.

California, along with 11 other states, initiated the lawsuit on July 13, contending that the deal would create a dominant media entity with the ability to raise prices in the film and television industries. The Wall Street Journal reported on Sunday that Bonta planned to request Paramount to divest certain cable channels and ensure that its movie studio remains separate from Warner Bros. before approving the merger, according to sources familiar with the matter.