Paramount Skydance in Advanced Settlement Talks with California Attorney General Over Antitrust Case

Paramount Skydance is engaged in advanced, confidential discussions with California Attorney General Rob Bonta to settle a multistate antitrust lawsuit that has stalled its planned acquisition of Warner Bros. Discovery, according to a report citing unnamed sources. The parties have explored compromises, including a proposal for the two studios to operate separately for a period rather than merging immediately. > "Potential settlement talks are confidential. We cannot confirm or deny whether settlement talks are occurring or their alleged substance," a spokesperson for Bonta’s office said. > "Running the two companies separately — but under common ownership — would be a mere 'behavioral' remedy; I am looking for a structural remedy that would entail separate ownership," Bonta previously stated. The lawsuit, filed by 12 states and the Writers Guild of America, remains unresolved, with a trial set for March 2027. Paramount has asked the court to require the states and the guild to post a $1.88 billion bond to cover potential daily fees to Warner Bros. Discovery shareholders, a motion scheduled for a hearing on September 24. The merger, valued at $111 billion, is partially financed by Larry Ellison and sovereign wealth funds from Saudi Arabia, Qatar and Abu Dhabi, and the FCC recently approved a petition allowing up to 49.5% foreign equity in the combined entity.