Court Schedules Two-Day Settlement Conference for Paramount-Warner Bros. Antitrust Case

A federal magistrate judge, Thomas Hixson, has been assigned to supervise a two-day settlement conference between Paramount Pictures and the California Attorney General’s office in the antitrust lawsuit over the $111 billion Paramount-Warner Bros. merger. The conference, set for late October, is a routine step in civil litigation and does not guarantee a settlement before the trial scheduled for March 2 in Oakland.

Paramount has indicated a desire to reach an agreement before Oct. 1, the date on which it would begin paying a $7 million daily fee to Warner Bros. shareholders. California Attorney General Rob Bonta said he is willing to settle only if the deal includes “robust structural remedies,” which he described as a potential divestiture of a substantial portion of the combined assets.

The states allege that the merger would unlawfully diminish competition in theatrical and basic-cable markets. Settlement talks were slated for Aug. 24 but were cancelled after Bonta accused Paramount of leaking details to the press, an allegation the studio denied.

At a recent scheduling conference, the parties were ordered to propose dates for in-person discussions by the following Tuesday. The settlement process may proceed under court supervision or through separate negotiations, and the October conference does not preclude an earlier resolution.

Paramount has agreed not to close the transaction until after the March trial but has asked the court to require the plaintiffs to post a $1.88 billion bond to cover potential costs if the deal is later approved. A hearing on the bond request is scheduled for Sept. 24, with the states arguing that Paramount is attempting to backtrack on its earlier commitment not to close the merger without a bond.