California expected to seek TV channel sales from Paramount-Warner, WSJ reports

California Attorney General Rob Bonta is reportedly set to request that Paramount divest certain cable channels and pledge to maintain a separation between its movie studio and Warner Bros. as part of the company's merger approval process, according to a report by the Wall Street Journal. The California state officials are scheduled to engage in talks with Paramount representatives on Monday to explore potential resolutions to the state's antitrust lawsuit, as highlighted in the report.

Both parties convened on Friday to outline the agenda for Monday's discussion, which will encompass matters related to both cable and motion picture sectors, the Journal disclosed. However, Paramount, Warner Bros. Discovery, and the California Attorney General's office have yet to comment on the matter as of press time. In the previous month, California, along with 11 other states, filed a lawsuit seeking to prevent Paramount's acquisition of Warner Bros. for $110 billion, citing concerns that the deal would diminish competition in film distribution and cable television, potentially impacting theaters and pay TV distributors.

Critics argued that the merger would result in higher prices for consumers, reduced job opportunities, and lower wage competitiveness for workers. Paramount maintains that the merger would enable the production of more films rather than fewer, with CEO David Ellison vowing that the combined studios would release 30 movies annually. However, the states have labeled this promise as unenforceable.