Paramount and California Attorney General Near Settlement Over Warner Bros. Deal

Paramount Pictures and a coalition of states led by California Attorney General Rob Bonta are in "advanced talks" to resolve a lawsuit that challenges Paramount's bid to acquire Warner Bros. Discovery, according to a report. The proposed settlement would require Paramount to keep the two movie studios operating separately for a set period rather than merging them immediately. Reuters has indicated that an agreement could be reached as early as the upcoming weekend, and the deal may include independent monitoring of CNN content and commitments on the number of theatrical releases.

Bonta has said he will only accept structural remedies, such as divestitures, and has previously noted that operating the studios independently cannot be the primary element of any settlement. Paramount has offered behavioral concessions, including a pledge to release at least 30 movies with 45-day theatrical windows. A settlement without divestitures would allow Paramount to complete the merger before an October 1 deadline, after which a $7 million-per-day fee would begin to accrue.

"Potential settlement talks are confidential," a spokesperson for Bonta’s office said, adding that the office could not confirm or deny the existence or substance of any negotiations. Paramount declined to comment.

Negotiations have been delayed by public leaks; last month Bonta cancelled a scheduled meeting, accusing Paramount representatives of leaking and misrepresenting negotiation details. A trial is set to begin in March, and the parties, along with the Writers Guild of America, will meet on October 14 for two days to discuss a settlement.

Separately, the Federal Communications Commission approved equity investments from three Middle East sovereign wealth funds that are financing Paramount’s bid, providing roughly $24 billion and resulting in foreign investors holding about 49.5 percent of the combined company.