Paramount Skydance Advances Settlement Talks with State Attorneys General Amid Merger Deadline

Paramount Skydance is moving closer to a settlement with the attorneys general of 12 states that have sued to block its planned acquisition of Warner Bros. Discovery. The talks come as the October 1 deadline approaches, after which Paramount would owe $7 million a day to WBD shareholders if the deal is not completed. Sources said negotiations with California Attorney General Rob Bonta appear to be progressing, though a pause is expected for the Yom Kippur holiday if an agreement is not reached by Sunday night.

Bonta has insisted on “structural remedies,” warning that proposals to keep the studios operating separately would be insufficient. He has described such measures as “behavioral” remedies that are hard for states to enforce. The Wall Street Journal reported that a possible settlement could require the two studios to remain separate for a period, a stance echoed by Paramount CEO David Ellison, who pledged to keep the legacy studios operating independently to preserve jobs.

The discussions also cover output commitments, with Ellison reportedly promising to produce at least 30 films a year, and include provisions for a written agreement to keep operations in California and to appoint a third-party editorial adviser for CNN and CBS. Sources indicated that enforceable commitments to maintain separate ownership of Warner Bros. Discovery assets could form part of the deal, potentially coupled with job-preservation guarantees.

Outside the negotiations, the Block the Merger coalition and actor Mark Ruffalo have organized rallies in Oakland, Los Angeles and New York to urge Bonta not to compromise. Ruffalo posted on social media, “Don’t you dare @AGRobBonta, do not cave,” and called on supporters to protest at the attorney general’s office. The Writers Guild of America has also filed an antitrust lawsuit alleging the merger would reduce the market for writers, and is seeking a $1.88 billion bond to block the transaction pending a federal trial scheduled for March 2027.