Paramount nears settlement with state AGs, but New York and Connecticut hold out

September 21, 2026 at 04:10 AM2 min

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Paramount is in advanced talks with state attorneys general to settle the antitrust lawsuit blocking its acquisition of Warner Bros. Discovery. California Attorney General Rob Bonta is pressing for a deal, but New York, Connecticut, and at least two other states are resisting the terms. The holdouts are seeking additional protections for workers and the independence of CNN and CBS News.

Key Facts

Paramount is in advanced talks with state attorneys general to settle the antitrust lawsuit blocking its acquisition of Warner Bros. Discovery.
California Attorney General Rob Bonta, leading the 12-state coalition, is pressing for a settlement deal.
New York Attorney General Letitia James is resisting the deal terms and seeking additional protections for workers.
Connecticut and at least two other states also have reservations and are not currently on board.
If no settlement is reached, the antitrust case goes to trial in California next March.

Settlement Negotiations

Paramount is in advanced talks with state attorneys general to resolve the antitrust lawsuit blocking its acquisition of Warner Bros. Discovery, CNN's parent company. California Attorney General Rob Bonta, who has been leading the 12-state coalition, has been pressing to strike a settlement deal with Paramount in recent days. However, some of the states are not yet on board, with New York Attorney General Letitia James resisting the deal terms and seeking additional protections for workers. Connecticut and at least two other states also have reservations about the settlement and are not currently on board. The holdouts are seeking additional remedies from Paramount, including independent content monitoring of CNN and commitments on theatrical releases.

Political Pressures

Political calculations loom large as James, Bonta, Tong and some of the other state AGs are up for reelection this November. James represents thousands of New Yorkers who work at Paramount and Warner, and her office has been in touch with at least half a dozen impacted unions during the settlement talks. Bonta has been under intense pressure, including from some usual allies, over Paramount's reported threats to leave California. Los Angeles Mayor Karen Bass, locked in a tough reelection campaign, said last week she would 'fight like hell' to keep film and TV production in the city.

Trial Deadline

If a settlement deal is not reached, the antitrust case will go to trial in California next March. That extended delay could potentially jeopardize the deal altogether. Reports of a looming settlement have raised concern among opponents of the merger, which would create a new Hollywood colossus uniting Paramount and Warner's movie studios, dozens of television channels, and the CBS News and CNN news operations.