California Attorney General Cancels Mediation Over Paramount-Warner Bros. Deal
California Attorney General Rob Bonta withdrew from a scheduled mediation on the Paramount Skydance-Warner Bros. Discovery merger, accusing Paramount of breaching confidentiality and misrepresenting settlement talks.
California Attorney General Rob Bonta announced on Monday that he had called off a planned mediation session with Paramount Skydance over the proposed $111 billion merger with Warner Bros. Discovery. Bonta said Paramount had leaked details of the preliminary discussions and misrepresented the substance of the talks, describing the conduct as a lack of good faith.
"Not only did Paramount leak the alleged substance of the settlement discussions, but they misrepresented these discussions, demonstrating a lack of good faith," Bonta said, adding that he had "pulled down this meeting."
The mediation, which was to include Paramount Skydance chief executive David Ellison, had been arranged after both parties agreed on confidentiality rules. Over the weekend, news outlets reported on the proposed summit, prompting Bonta to cancel the meeting.
According to a Wall Street Journal report, Bonta was preparing to offer Paramount a set of concessions, including the divestiture of certain basic-cable channels and keeping the Warner Bros. film studio separate from Paramount Pictures—terms that Ellison had previously indicated would be unacceptable.
Paramount declined to comment on the allegations. The dispute follows earlier tensions, including Ellison’s threat to relocate Paramount’s headquarters out of California and criticism from state Democrats urging Bonta to settle the antitrust lawsuit before a scheduled trial next spring.
Bonta said he remained open to future mediation if Paramount engaged in good-faith negotiations.
"As soon as Paramount stops playing games and engages sincerely, my office is happy to meet again," he said.
The case, filed by Bonta and 11 other state attorneys general, alleges that the merger would give the combined company control of more than half of U.S. television distribution, violating antitrust law. A judge has set a hearing for late September, and the parties have not indicated when a new mediation date might be arranged.