California AG Calls Off Paramount-Warner Bros. Meeting, Accusing

A planned Monday meeting between David Ellison’s Paramount Skydance and California state authorities, designed to kick off ‌settlement talks over the state’s legal action to block the entertainment company’s proposed acquisition of Warner Bros. Discovery, has been called off at the last moment, California attorney general Rob Bonta stated.

He is one of a group of state attorneys general (AG) that have taken aim at the planned mega-merger.

“Not only did Paramount leak the alleged substance of settlement discussions, but they misrepresented these discussions, demonstrating a lack of good faith,” Bonta said in a statement. “As soon as Paramount stops playing games and engages sincerely, my office is happy to meet again.” A dozen AGs, led assets and cost more than $1 billion in “ticking-clock” fees ahead of a March trial, among other potential fallout.

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Key Analysis and Detailed Timeline

Ellison has in recent weeks sought to fight back with a media blitz, a threat to leave California and a motion to force Bonta’s hand California Governor Gavin Newsom signaled his support on Friday for settlement talks in the antitrust suit seeking to block the Paramount-Warner Bros. When asked about his stance on the merger and the antitrust suit from 12 states challenging it at a press appearance in San Francisco, the governor referenced remarks made “Look, I was appreciative, I think this week, earlier this week, you heard the attorney general himself say he’d prefer this settled in the boardroom, not the courtroom,” Newsom said.

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“So I think there’s some universal sentiment there, if that’s possible. The question is if that’s possible. And what’s the best deal, what’s the landing?

And that has to be worked through.”

Broader Impact and Sector Outlook

“Not only did Paramount leak the alleged substance of settlement discussions, but they misrepresented these discussions, demonstrating a lack of good faith,” Bonta stated in a statement. “As soon as Paramount stops playing games and engages sincerely, my office is happy to meet again.” A dozen AGs, led assets and cost more than $1 billion in “ticking-clock” fees ahead of a March trial, among other potential fallout.

Ellison has in recent weeks sought to fight back with a media blitz, a threat to leave California and a motion to force Bonta’s hand California Governor Gavin Newsom signaled his support on Friday for settlement talks in the antitrust suit seeking to block the Paramount-Warner Bros. merger.