Paramount settlement rumors spark pretty profoundly pissed-off Block The Merger response

Late last week, whispers began to surface that a deal between media giant Paramount and the alliance of 12 state attorneys general, who are attempting to thwart the merger with rival studio Warner Bros., could be on the horizon. Reports from The Wall Street Journal and Reuters suggested that the two parties were in "advanced talks" that might potentially resolve before the weekend came to an end.

(Some sources indicated that Paramount's David Ellison might be willing to keep his positions as the separate heads of Paramount and Warner Bros., as a compromise both sides might find agreeable.) While the origin of these reports, which were based on unnamed "sources familiar with the matter," remains unclear, the recipients are certain: members of the Block The Merger group, a coalition that includes high-profile Hollywood figures such as Mark Ruffalo, Denis Villeneuve, and Lilly Wachowski, and who vehemently oppose the proposed merger.

The group, represented by California Attorney General Rob Bonta and his colleagues, released a strongly-worded statement on Saturday, condemning the purported "deal" as an affront to those who have opposed the merger and to the hundreds of thousands of workers, journalists, and consumers who would be negatively impacted if the deal proceeds.

The statement asserts that an agreement relying on unenforceable concessions is merely a victory for David Ellison, and a loss for everyone else. Drawing on remarks from prominent figures like Senator Elizabeth Warren, who called Paramount's actions "a dangerous merger," the statement urges Bonta and his fellow state attorneys general to reject any deal that does not involve significant concessions from Ellison.

The statement emphasizes that "we know a bad deal when we see one," and urges the AGs to firmly reject the proposed merger with no concessions. This stance represents a more assertive approach than the positions taken by some California officials, as well as others in the film industry, who have generally supported the idea of a settlement.

California Governor Gavin Newsom and Los Angeles Mayor Karen Bass have both expressed their support for some form of agreement, particularly as Paramount has become increasingly vocal about the possibility of relocating out of the state. The situation has put substantial pressure on Bonta and his fellow attorneys general, who have deliberately positioned themselves as the final obstacle in the path of the $111 billion acquisition.

They now face the daunting task of deciding whether to stand firm against the proposed merger, despite the potential backlash from powerful stakeholders.