Paramount merger settlement talks face opposition from senators and industry groups

Paramount Pictures, a coalition of state attorneys general and the Writers Guild of America are holding settlement discussions aimed at ending an antitrust lawsuit related to the Warner Bros. Discovery merger. The talks have been met with opposition from several public officials and industry advocates.

Senator Elizabeth Warren said the proposed settlement should not proceed, warning that the merger could create a media conglomerate with excessive power. Block the Merger, a group of actors, writers and other industry figures, issued a statement calling the rumored deal an insult to those who have opposed the transaction and warning that any agreement based on unenforceable concessions would benefit only Paramount’s owner, David Ellison.

Leaks indicate that California Attorney General Rob Bonta is leading the negotiations, which could include provisions on editorial independence for CNN, asset sales and job protections. The parties hope to reach an agreement before a federal trial scheduled for March 2027, which would avoid further legal and financial repercussions.

The timeline for a settlement is uncertain. Court-ordered talks are set for mid-October, but analysts note that the schedule may not align with Paramount’s financial obligations, including a daily fee to Warner Bros. Discovery shareholders starting October 1 and a pending request for a $1.88 billion bond from state authorities.

New York Attorney General Letitia James has not publicly aligned with California’s approach, and the Writers Guild, which joined the antitrust suit in July, remains a variable in the negotiations.

Paramount has declined to comment on the discussions, and the attorney general’s office did not respond to requests for comment on the criticism from Senator Warren and Block the Merger.