Paramount and state AGs to hold settlement talks Monday in WBD merger fight
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Representatives for Paramount and the coalition of state attorneys general suing to block its takeover of Warner Bros. Discovery are set to meet Monday to discuss a potential settlement. California Attorney General Rob Bonta said any resolution would require robust structural remedies. The antitrust trial is scheduled to start next March.
Key Facts
- Paramount and the state attorneys general will meet Monday to discuss a potential settlement of the WBD merger lawsuit.
- California Attorney General Rob Bonta said any resolution must include robust structural remedies.
- The antitrust trial is scheduled to start next March.
- A coalition of 12 Democratic state attorneys general filed suit last month to block the merger.
- A ticking fee will raise the price of WBD starting October 1.
Settlement Talks
Representatives for Paramount and the parties suing to block its takeover of Warner Bros. Discovery are set to meet next week for talks that could lead to a settlement. The two sides remain far apart, and the plaintiffs may prefer to take their arguments to court at the antitrust trial scheduled to start next March. California Attorney General Rob Bonta said Friday night that any resolution would have to include robust structural remedies that would change the shape of the media mega-merger. Analysts have warned that the structural remedies Bonta has in mind might be deal-breakers for Paramount, making any settlement talks ultimately unproductive.
Merger Opposition
Paramount is trying to merge its movie studio and television operations with WBD, the parent of CNN, HBO, Discovery, the Warner Bros. studio and many other assets. A coalition of 12 Democratic state attorneys general filed suit last month to block the merger, arguing the merger would violate antitrust law and harm Hollywood. The Writers Guild of America filed a parallel suit. The long road to trial will be expensive for Paramount since a ticking fee will begin to raise the price of WBD starting October 1.
Political Pressure
Numerous California politicians, including outgoing Gov. Gavin Newsom, have called for a pre-trial resolution to the conflict. Some have cited Paramount's talk about potentially moving operations out of California. Bonta has dismissed that talk as a blackmail attempt, but he has said he is ready for good faith talks with Paramount. After Variety reported on Friday that Bonta's office would be meeting with Paramount representatives on Monday to discuss a potential settlement, Bonta issued a statement designed to maintain his leverage in any negotiations.
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Paramount and state AGs to hold settlement talks Monday in WBD merger fight
