California Attorney General Rob Bonta canceled a scheduled meeting with Paramount Skydance on Monday, halting preliminary settlement talks over the proposed $110 billion merger with Warner Bros Discovery.
The decision follows a lawsuit filed by California and 11 other states on July 13 to block the transaction, which the coalition argues would create an unchecked media giant capable of inflating prices across film and television markets.
Bonta stated that Paramount had misrepresented the substance of discussions and leaked details to the press, undermining good-faith negotiations. "Not only did Paramount leak the alleged substance of settlement discussions, but they misrepresented these discussions, demonstrating a lack of good faith," he said. "As soon as Paramount stops playing games and engages sincerely, my office is happy to meet again."
Paramount Skydance CEO David Ellison has pledged to release 30 films annually and maintain a 45-day exclusive theatrical window for new releases. A Paramount spokesperson denied leaking any information, asserting the company remains committed to resolving the lawsuit through constructive dialogue. "We remain hopeful and stand ready to continue good faith discussions to resolve the Attorneys General suit and move forward with our plans for increased competition and increased output to the benefit of the talent and entertainment workers," the spokesperson said.
The Wall Street Journal reported that Bonta had planned to demand divestitures of certain cable channels and structural separation of Paramount’s movie studio from Warner Bros before approving the deal. A trial in the case is scheduled for March.
