Judge Schedules Two-Day Settlement Conference for Paramount-Warner Bros. Discovery Antitrust Case
A federal judge ordered Paramount Global and the state attorneys general challenging its merger with Warner Bros. Discovery to attend a settlement conference on Oct. 14-15, ahead of a trial slated for early March.
A San Francisco magistrate judge set a two-day settlement conference for Oct. 14-15 involving Paramount Global and the coalition of state attorneys general seeking to block its merger with Warner Bros. Discovery. The conference is a required step before the trial, which is scheduled for early March, and does not indicate any progress toward an agreement.
California Attorney General Rob Bonta, who leads the 12-state group, cancelled a prior meeting after accusing Paramount of leaking discussion details, a claim the company denied. Bonta has publicly called for "structural" remedies, including possible divestitures of Warner’s cable networks and a separation between the Paramount and Warner Bros. film studios.
Paramount CEO David Ellison has pledged that the combined entity will produce 30 films per year and has warned that the company could consider moving its operations out of California if the litigation drags on. Ellison told senior managers that a $7 million-per-day penalty would begin accruing on Oct. 1 if the merger is not completed, after which he would explore relocation options.
Magistrate Judge Thomas S. Hixson ordered both parties to exchange settlement statements by Oct. 7. The statements must outline claims, defenses, key disputed issues, an assessment of each side’s chances of success, and any offers or demands. Parties may also submit a confidential letter and must be ready to discuss settlement goals, obstacles, and possible creative solutions. Representatives of the Writers Guild of America, which is also challenging the merger, will attend.
All settlement statements and conference discussions are confidential and will not be admissible at trial if no settlement is reached. The parties must notify the court if they settle earlier.
A separate hearing on Sep. 24 will address Paramount’s request that plaintiffs post a $1.88 billion bond to cover the daily penalty. The Department of Justice, which approved the merger in June, supports the bond, stating it ensures parties have "skin in the game" and protects defendants from wrongful injunctions.