Paramount and California AG to discuss settlement of Warner Bros. Discovery merger lawsuit

Paramount Skydance and the office of California Attorney General Rob Bonta are scheduled to meet on Monday to discuss a potential settlement of the antitrust lawsuit that seeks to block Paramount's $110 billion purchase of Warner Bros. Discovery. The case, filed by a coalition of 12 state attorneys general in July, alleges the merger would lessen competition in theatrical film distribution and basic cable programming, giving the combined entity roughly 27% of the wide-release theatrical market and over 30% of top-grossing films.

Both parties have indicated a willingness to negotiate. Bonta told CNBC that the states prefer to resolve disputes in the boardroom rather than in court, but any agreement would need “robust structural remedies.” The merger remains on hold under a July 24 court stipulation that bars closing or integration until a ruling is issued or until June 1, 2027, whichever comes first. U.S. District Judge Araceli Martínez-Olguín has set a 12-day trial for March 2, 2027, and has encouraged the parties to identify magistrate judges for a settlement conference.

Paramount agreed in February to acquire Warner Bros. Discovery for $31 per share in cash, valuing the deal at about $110 billion including debt. The companies argue the combination would strengthen competition in a rapidly evolving media landscape and would continue to produce at least 30 theatrical films each year.