Paramount and California Attorney General to Meet on Settlement Talks for Warner Bros. Discovery Merger

Paramount Pictures and Skydance representatives are scheduled to meet with the California Attorney General’s office on Monday to explore a settlement of the state-led antitrust lawsuit that has blocked the company’s $111 billion merger with Warner Bros. Discovery. The merger remains on hold pending a federal trial in Oakland set for March.

Attorney General Rob Bonta said he is willing to negotiate, but noted that Paramount has not yet offered the structural remedies the states deem necessary. A Paramount spokesperson declined to comment.

Bonta leads a coalition of 12 states that filed the challenge in July, arguing that the deal would unlawfully limit competition in theatrical distribution and basic cable, consolidating two of Hollywood’s five legacy studios and two of the top three cable programmers.

Under federal procedure, the parties must attempt settlement before a magistrate judge. At a recent hearing, Judge Araceli Martinez-Olguin asked both sides to propose two magistrates who could oversee mediation by the following Wednesday.

Several industry groups and officials, including the Directors Guild of America, IATSE, Los Angeles Mayor Karen Bass and the theater-chain trade group Cinema United, have expressed support for a settlement. Governor Gavin Newsom said the attorney general prefers a boardroom resolution rather than a courtroom battle, adding that the details of any deal are still being worked out.

Paramount has offered commitments such as producing 30 films annually for the next three years and keeping them in theaters for at least 45 days, but Bonta’s office argues that similar behavioral remedies have been difficult to enforce. The Writers Guild of America, which has its own lawsuit related to the merger, is also slated for trial in March and could be part of a broader resolution. A WGA spokesperson did not respond to requests for comment.