California expected to seek TV channel sales from Paramount-Warner

California officials are set to meet with Paramount executives to discuss potential resolutions to the state's antitrust lawsuit against the media conglomerate, according to a report by the Wall Street Journal. Attorney General Rob Bonta is expected to ask Paramount to divest certain cable channels and maintain a separation between its movie studio and Warner Bros before the merger can be approved, the report stated.

Meetings between Paramount and state officials were scheduled to take place on Monday to address the issues outlined in the lawsuit, which includes discussions about both the cable and motion-picture industries. Lawyers from both sides convened on Friday to establish the agenda for Monday's meeting, focusing on key aspects of the dispute.

The lawsuit, filed by California and 11 other states last month, seeks to block Paramount's acquisition of Warner Bros for $110 billion. The deal has been challenged on the grounds that it would reduce competition in film distribution and cable television, potentially harming theaters and pay TV distributors. Critics argue that the merger would lead to higher prices for consumers, wage stagnation for workers, and a reduction in the number of films released annually.

Paramount has maintained that the acquisition will enable it to increase production output, asserting that the combined studios would release 30 movies a year. The proposed merger has faced criticism from the states, who contend that the promised increase in output is unverifiable and unenforceable.