California AG Says No Paramount Settlement Talks Scheduled

The latest development is that Bonta has not merely postponed Monday’s planned meeting: no replacement talks are on the calendar, according to Reuters. He said he canceled the session after information from confidential settlement discussions reached the press, conduct he described as “unacceptable.”

Bonta nevertheless left open the possibility of returning to negotiations. He said Tuesday that California would be prepared to meet if Paramount addresses the dispute over confidentiality and participates sincerely and in good faith, according to Reuters.

The breakdown adds uncertainty to Paramount’s effort to complete the Warner Bros. Discovery acquisition. Paramount has sought a settlement of the state antitrust case, while a separate challenge from the Writers Guild of America also remains an obstacle to the transaction, Reuters reported. If the states’ case proceeds to the trial scheduled for March, Paramount faces mounting costs associated with keeping the transaction alive.

The dispute also highlights the negotiating leverage held by California and the other states challenging the combination. According to Reuters, the states have secured important rulings in the litigation so far, strengthening their position should settlement discussions eventually restart.

We’d love to be your preferred source for news.

Please add us to your preferred sources list so our news, data and interviews show up in your feed. Thanks!

Add as Preferred Source

Paramount denied being responsible for the disclosures that prompted Bonta to cancel the meeting. A company spokesperson said Monday that Paramount shared the attorney general’s concerns about public discussion and what the company characterized as inaccurate reporting surrounding the transaction, according to Reuters.

Related: California Breaks Off Paramount Talks Over $110 Billion Warner Bros. Deal

Bonta on Tuesday also sharpened his criticism of the substance of Paramount’s proposals. He said the company knows what remedies California and the other attorneys general are seeking but has yet to make proposals that meet those demands. A commitment by the combined studios to release 30 films annually would not be sufficient, he said, according to Reuters.

California’s concerns extend beyond competition between Hollywood studios. Bonta reiterated that the combination could result in higher consumer prices, fewer choices and lower-quality film and television offerings. Reuters also cited a Los Angeles County report projecting that combining the companies’ operations could eliminate about 4,500 film and television jobs within three years.

The attorneys general are seeking remedies aimed at addressing the merger’s effects on widely distributed theatrical films and basic cable television, Reuters reported. That suggests the gap between the sides remains substantive as well as procedural, even if negotiations resume.

For Paramount, the immediate issue is now whether it can persuade Bonta to return to the negotiating table before litigation advances further. For California, Tuesday’s comments signal that renewed talks remain possible — but only after the attorney general is satisfied that the process can proceed confidentially and that Paramount is prepared to offer more significant concessions.

Source: Reuters