California AG cancels settlement talks with Paramount, cites alleged leaks

California Attorney General Rob Bonta announced on Monday that he had cancelled a scheduled meeting with Paramount Skydance to discuss a possible settlement of the state’s antitrust lawsuit challenging the company’s $110 billion acquisition of Warner Bros. Discovery. Bonta said he withdrew the meeting because he believed Paramount had leaked details of the settlement talks and misrepresented the discussions, stating, "I prefer to resolve disputes in the boardroom, not the courtroom. If the opposing party wants to meet in good faith, we’ll meet."

A Paramount spokesperson rejected the allegation, saying the company has not been the source of any leaks and shares the AG’s concerns about public misreporting of the negotiations. The dispute follows a Wall Street Journal report that described portions of the Friday-day meeting.

The antitrust case, filed by twelve state attorneys general and the Writers Guild of America, argues that the merger would reduce competition in theatrical film releases, top-grossing movies and basic cable distribution. Paramount has denied the claims, asserting the deal would boost competition and production output. The company has frozen the merger pending resolution of the lawsuit or until June 1, 2027, whichever occurs first, and a federal judge has set a trial for early March.

The merger, which would combine two major studios, streaming services, cable channels and news outlets, is already cleared by the U.S. Justice Department and more than 60 international regulators. California officials, including Governor Gavin Newsom and Los Angeles Mayor Karen Bass, have urged a swift resolution, warning that prolonged uncertainty could affect workers and productions in the state.