Paramount is in advanced talks with California officials to settle an antitrust lawsuit filed in July by Attorney General Rob Bonta and a coalition of 12 Democratic‑led states that seeks to block its $81 billion acquisition of Warner Bros. Discovery.
The states argue the combination would create excessive concentration in theatrical films and cable television. Under discussion is a compromise whereby Paramount would operate the combined movie studios separately for a period rather than integrating them immediately.
The deal would bring together Paramount’s CBS, MTV and Comedy Central with Warner’s DC superheroes, Harry Potter, CNN, Cartoon Network and Food Network, placing those assets under Paramount CEO David Ellison. Paramount has warned it could begin relocating out of California as early as Oct. 1, with Tennessee seen as the likely destination, if no settlement is reached.
The merger agreement includes a “ticking fee” that pays Warner shareholders roughly $650 million per quarter (about $7 million per day) until closing. Paramount also asked a federal judge to require the states and the Writers Guild to post a nearly $1.9 billion bond; a hearing on that request is set for next week.
