Paramount and State Attorneys General Begin Preliminary Talks Ahead of October Settlement Conference

Paramount Pictures and a group of state attorneys general, led by California Attorney General Rob Bonta, are holding preliminary discussions to set the agenda for a court-ordered settlement conference scheduled for October 14-15 in San Francisco. The talks, described by a source familiar with the matter as “part of the process before you get the principals onboard,” focus on potential remedies such as separating the film and television studios of Paramount and Warner Bros. Discovery for a period after the merger, and addressing concerns about cable network concentration.

The federal judge’s order requires Paramount, Warner Bros. Discovery and the states to appear for a two-day conference, after which the parties may explore options like a “behavioral remedy” that would require the combined company to release a minimum number of films annually. Bonta has indicated that such a remedy would not satisfy the plaintiffs, who are also looking at ways to divest some of the 50-plus cable networks in the merged portfolio.

Shares of Paramount rose 5% in after-hours trading following reports of the discussions, while Warner Bros. Discovery stock gained 6%. The antitrust lawsuit, filed by California and 11 other states in July, is set for trial on March 2, 2027, and includes a daily fee of $7 million that could be imposed on Warner Bros. Discovery shareholders starting October 1.

Paramount declined to comment on the status of the negotiations. A spokesperson for the California AG’s office said settlement talks are confidential and that the office could not confirm or deny their existence. Earlier in August, Bonta accused Paramount of leaking details of prior settlement talks and cancelled a scheduled meeting, alleging bad-faith conduct.

State officials, including Governor Gavin Newsom and Los Angeles Mayor Karen Bass, have urged a swift resolution, citing potential job losses and economic impact on the region if the merger is delayed or if Paramount relocates production. A forthcoming report from the Los Angeles County Economic Development Corporation warns that the $80 billion merger could threaten thousands of jobs, while another internal report suggests the combined entity could generate significant employment if the deal proceeds.

The litigation schedule remains busy, with a hearing in Oakland next week on Paramount’s request for a $1.88 billion bond to cover anticipated losses from the daily fee, and a deadline on September 25 for the states to respond to a motion from Iowa and Montana seeking Supreme Court review of the antitrust suit.