Paramount will meet with California officials Monday in preliminary talks about a possible settlement to the state’s lawsuit that seeks to halt the company’s pending $110 billion acquisition of Warner Bros. Discovery, according to a report Saturday.
Citing “four people briefed on the upcoming discussions,” the New York Times reported on the planned discussion Saturday, adding that Paramount asked for the meeting.
The talks will include senior executives and lawyers for Paramount Skydance Corporation and top lawyers with the California Attorney General’s Office, the newspaper reported.
Attempts to reach the state AG’s Office and Paramount for comment Saturday were not immediately successful.
The U.S. Department of Justice closed its review and approved the proposed merger June 12, but California Attorney General Rob Bonta and 11 other state attorneys general subsequently filed a lawsuit seeking to block the deal on antitrust grounds.
Under a court stipulation entered July 24, the companies cannot close the transaction until the earlier of five days after a decision on the merits of the lawsuit or June 1, 2027. A trial is scheduled for March 2027.
“If the opposing party in litigation wants to meet in good faith to make a sincere effort to resolve the case, we’ll meet,” Bonta said Friday, the NYT reported.
Gov. Gavin Newsom, Los Angeles Mayor Karen Bass and other Democratic elected officials and union leaders have expressed support for quickly reaching a settlement
“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 Thursday. “The continued uncertainty is not good for workers, not good for productions and not good for the future of this industry.”
City Councilwoman Nithya Raman, who is challenging Bass in the Nov. 3 mayoral election, had a different perspective. In a statement, Raman said L.A.’s film industry is already in crisis and the merger would only make it worse.
“This is a bad deal for entertainment workers and a bad deal for Los Angeles,” Raman said in her statement. “That’s why I support Attorney General Rob Bonta’s antitrust lawsuit and stand with the workers fighting this merger.”
“Paramount’s threat to leave California unless the lawsuit is dropped is an attempt to strong-arm our state. Serious questions about this merger’s legality should be decided in court, not through corporate threats,” Raman added.
The Writers Guild of America was also quick to criticize Bass for calling for a settlement. The WGA has partnered with Bonta and 11 other states to challenge the merger.
“We are disappointed that Mayor Bass has chosen to join Paramount’s pressure campaign on public enforcers, to push through a merger that is being rightfully challenged as illegal and will lead to job losses in the entertainment industry,” WGA said in a statement to Deadline Hollywood. “Her statement comes on the heels of a county report estimating thousands of jobs will be lost if the merger proceeds.”