California expected to seek TV channel sales from Paramount-Warner

California officials are set to meet with Paramount to explore potential solutions to the state's antitrust lawsuit against the media giant, according to the Wall Street Journal. Attorney General Rob Bonta is expected to request that Paramount divest some cable channels and ensure the separation of its movie studio from Warner Bros before approving their merger.

The Wall Street Journal reported that meetings between Paramount and California state officials are scheduled for Monday, with discussions focusing on the cable and motion-picture businesses. Paramount, Warner Bros Discovery, and the California Attorney General's office have not yet responded to requests for comment. Last month, California and 11 other states filed a lawsuit to prevent Paramount's $110 billion acquisition of Warner Bros, claiming the deal would reduce competition in film distribution and cable television, negatively impacting theaters and pay TV distributors.

Critics argue that the deal could lead to higher prices for consumers, fewer job opportunities, and lower wages for workers. Paramount asserts that the acquisition will result in increased production, not decreased, and CEO David Ellison has promised that the combined film studios will release 30 movies annually, a commitment deemed unenforceable by the states.