California Attorney General Rob Bonta has called off settlement negotiations with Paramount regarding the state’s legal challenge to a proposed $111 billion acquisition of Warner Bros. Discovery by David Ellison. Bonta, who heads a coalition of 12 states opposing the merger, canceled the scheduled Monday meeting after accusing Paramount of mishandling discussions that had taken place the previous Friday.
The attorney general alleged that Paramount both disclosed details of the confidential settlement discussions and provided inaccurate accounts of what was discussed, indicating a lack of genuine negotiating intent. In a statement, Bonta indicated he would resume talks only when the company demonstrated a sincere commitment to resolving the matter.
The legal challenge centers on concerns that the combined entity would wield excessive control over cable television distribution and film production sectors. While settlement discussions had raised hopes for a potential resolution, Bonta has previously indicated that any agreement would likely require significant structural changes, potentially including asset divestitures that Paramount may find unacceptable. An antitrust trial is scheduled for March, and time pressure is mounting as Paramount faces mounting financial obligations to shareholders if the transaction remains unclosed.
Originally reported by Variety →
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