Paramount and California Attorney General Set for High-Stakes Talks Over Antitrust Suit

Paramount will sit down with California Attorney General Rob Bonta on Monday for what is shaping up to be a pivotal round of settlement talks, as the state's antitrust lawsuit threatens to derail the company's proposed $111 billion merger with Warner Bros. Discovery.

Bonta, joined by 11 other states, sued to block the merger, arguing it would hurt competition in the entertainment industry. The case is scheduled for trial in March in federal court in Oakland, but both sides have signaled they are open to negotiating a resolution before then.

At a news conference Thursday, Bonta said any settlement would require "robust" concessions from Paramount chief David Ellison to address anticompetitive concerns. "If Ellison and Paramount want to come to the table in good faith and talk, we want to talk, too. We're happy to have that conversation," he said. He has repeatedly called the merger "unlawful," saying it would lead to higher prices, lower quality, and less content for film and television, harming theaters, cable distributors, and viewers across the country.

Paramount has been aggressively pushing for a settlement, in part because the delayed close is expensive. A prolonged court battle could cost the company an extra $7 million per day until the deal is completed, according to reports. Paramount is said to have requested Monday's meeting, which is expected to include senior executives, lawyers for the company, and top officials from the attorney general's office.

To win approval, Paramount has pledged a range of commitments, including producing 30 films a year for the next three years. But those proposals have so far failed to satisfy Bonta.

The stakes are particularly high for California. The company has said it is considering relocating its Hollywood studios out of state over the lawsuit, with Ellison reportedly eyeing Tennessee, Texas, or Georgia — possibly establishing a new base in Austin.

Governor Gavin Newsom and Los Angeles Mayor Karen Bass have both called for a negotiated resolution to avoid a lengthy and damaging court fight. "While there are varying perspectives on the proposed transaction, today we are united around one clear message: It is time for all parties to come to the table," Bass said. "The continued uncertainty is not good for workers, not good for productions, and not good for the future of this industry."

Analysts say the outcome could reshape the media landscape, determining whether one of the largest entertainment mergers in history moves forward or collapses under regulatory scrutiny. The talks are being closely watched by industry executives and political leaders given the deal's outsized impact on Hollywood and California's economy.