#Showbiz: California cancels talks with Paramount over Warner Bros deal

California Attorney General Rob Bonta has canceled a meeting with Paramount Skydance representatives on Monday to start settlement talks over the state's lawsuit aiming to halt Paramount's $110 billion acquisition of Warner Bros Discovery, according to his office. The deal is the final obstacle to the merger, along with a parallel lawsuit filed by the Writers Guild of America.

Paramount has expressed willingness to settle the case, which is crucial to maintaining the deal's integrity, as the company would face substantial fees and costs if the lawsuit proceeds to trial in March. However, Bonta accuses Paramount of leaking details of a secret meeting held on Friday and engaging in bad faith, a claim the company denies.

Despite the allegations, Paramount's spokesperson maintains that the company shares Bonta's concerns about the public discussions and misreporting surrounding the deal. Bonta has shown openness to settlement agreements but has emphasized the importance of structural remedies over companies merely promising to take certain actions.

Paramount Skydance CEO David Ellison has pledged to release 30 movies annually, keeping them exclusively in theaters for 45 days. The lawsuit, filed by California and 11 other states on July 13, argues that the deal would create a dominant media entity capable of raising film and television prices.