Paramount Skydance and California Attorney General to Hold Settlement Talks on Warner Bros. Discovery Merger

Paramount Skydance and lawyers for California Attorney General Rob Bonta are scheduled to meet for two days, Oct. 14 and Oct. 15, in court-ordered settlement negotiations aimed at resolving the lawsuit that blocks David Ellison’s $111 billion bid to acquire Warner Bros. Discovery. The merger would combine assets such as HBO, CBS, CNN, TBS, Food Network, Comedy Central and the Paramount and Warner Bros. studios under a single corporate structure.

Bonta and a coalition of 11 Democratic state attorneys general filed the suit in July, alleging antitrust concerns. After a prior session was cancelled when preliminary details were leaked, Bonta accused Paramount of violating a confidentiality agreement and spreading misinformation.

The Justice Department, which previously approved the merger without conditions, filed a statement of interest asserting that the plaintiffs, as private parties, face higher legal hurdles than the federal government. The department also requested that California, other states and the Writers Guild of America post a $1.88 billion bond to cover potential “ticking fees” owed to Warner Bros. Discovery shareholders if the deal does not close by Oct. 1. Paramount has agreed to these fees, while Bonta’s office maintains that the bond should not be required; a hearing on the issue is set for Sept. 24.

Makan Delrahim, Paramount’s chief legal officer and former antitrust chief in the Trump administration, is leading the company’s legal strategy. Ellison’s bid has already secured approvals from more than 65 foreign regulators, and the company expects the Federal Communications Commission to approve a foreign-ownership structure that would give Middle-Eastern investors nearly a 50 percent stake. Bonta’s lawsuit remains the final legal hurdle before the transaction can be completed.