California AG Bonta Says No Settlement Talks Scheduled With Paramount After Canceling Meeting

California Attorney General Rob Bonta said on Tuesday that there are no scheduled meetings with Paramount to discuss a settlement of the antitrust lawsuit over the proposed merger with Warner Bros. Discovery. He added that the meeting planned for Monday was cancelled on Sunday.

"They wanted to have the settlement discussions, and we are happy to hear them out. We thought that they were reaching out to us in good faith and sincerely, and unfortunately they violated the rules of engagement. They leaked lies to the press while we were in settlement negotiations, and that’s not okay," Bonta said. Paramount responded that it has not been the source of any leaks of confidential discussions with the attorney general’s office. A spokesperson for the AG’s office later said Paramount had asked the agency to keep the settlement talks confidential under Federal Evidence Code 408, but the AG’s team believes the company disclosed the information itself, though no federal law violation is being alleged at this time. The Wall Street Journal reported that the AG’s demands include keeping the studios separate and divesting certain cable networks, and Governor Gavin Newsom indicated that multiple meetings were ongoing. Bonta emphasized that the alleged disclosure of the substance of the negotiations is prohibited by federal law and undermines candid, productive discussions. Paramount’s spokesperson said the company remains hopeful and ready to continue good-faith talks to resolve the attorneys-general suit and advance its plans for increased competition and output for talent and entertainment workers. The lawsuit, filed by Bonta and 11 other state attorneys general, led a federal judge to issue a temporary restraining order that halted the merger for four weeks. Paramount later agreed to delay closing the deal until June or until the legal issues are settled, with a trial scheduled for next March.