Paramount Skydance and California Attorney General Rob Bonta have made progress in settlement talks that could resolve the state’s antitrust challenge to Paramount’s proposed takeover of Warner Bros. Discovery, it was reported Friday.
The two sides have been quietly negotiating a possible resolution to the lawsuit brought by Bonta and 11 other state attorneys general seeking to block the massive Hollywood merger, according to the Los Angeles Times.
The Times, citing people familiar with the matter, reported Friday that the discussions have been constructive in recent days, although it remained unclear how close the two sides were to reaching an agreement.
The Wall Street Journal first reported that the parties were in advanced settlement talks.
Paramount declined to comment. There was no response to an email sent to the California Attorney General’s Office early Friday evening seeking comment.
The apparent progress comes after weeks of acrimony between Paramount and Bonta over the proposed combination of two of Hollywood’s largest studios.
Bonta led a coalition of 12 state attorneys general in filing an antitrust lawsuit in July seeking to block the deal, arguing that combining Paramount and Warner Bros. would reduce competition in the movie and television industries.
Paramount has disputed those claims and has argued the merger would give the combined company the scale to compete with larger technology and entertainment companies.
The companies subsequently agreed not to complete the merger until June 1, 2027, or until after a court ruling on the states’ claims, whichever comes first.
Earlier this week, the two sides agreed to participate in court-ordered settlement talks Oct. 14 and 15.
A previous effort to hold settlement discussions collapsed in August when Bonta canceled a planned session and accused Paramount of leaking information from confidential discussions and “playing games.” Paramount denied being the source of the leaks.
Paramount Chief Executive David Ellison has additional financial incentive to resolve the dispute before Oct. 1. The Times reported that Paramount would be required after that date to pay Warner Bros. Discovery shareholders an additional $7 million a day on top of the $81 billion it has agreed to pay them.
Paramount has also increased pressure on state and local officials in recent weeks by threatening to move the company out of California if the legal fight continues.
The possibility has raised concerns among officials seeking to stem the loss of film and television production jobs from the Los Angeles area.
The merger has received regulatory approvals in more than 65 nations. The Federal Communications Commission this week approved a foreign ownership structure for the proposed combined company.
A federal trial on the states’ antitrust challenge is scheduled for March.