Business & Finance
California attorney general cancels settlement talks with Paramount over Warner Bros. Discovery merger
Rob Bonta accused Paramount of leaking and misrepresenting preliminary discussions, delaying resolution of a state-led antitrust suit.
The short version
- California Attorney General Rob Bonta canceled scheduled settlement discussions regarding the proposed $110 billion–$111 billion acquisition of Warner Bros. Discovery by Paramount.
- Bonta, leading a coalition of 12 state attorneys general opposing the transaction, accused Paramount of leaking and mischaracterizing details from a prior meeting.
- An antitrust trial over the acquisition is scheduled for March 2027, creating potential regulatory delay costs and a ticking fee for Paramount starting this autumn.
Key facts
- California Attorney General Rob Bonta called off planned settlement meetings with Paramount, citing bad-faith leaks and misrepresentations of a prior discussion.[Variety · CNBC]
- Bonta leads a coalition of 12 states seeking to block the Paramount-Warner Bros. Discovery merger over competition concerns in film production and cable television.[Variety]
- An antitrust trial regarding the state challenge is scheduled for March.[Variety · CNBC]
- The merger previously received approval from federal and international antitrust regulators, including the U.S. Department of Justice.[CNBC]
- Paramount agreed to hold off on closing the acquisition until as late as June 2027 while the legal process plays out.[CNBC]
- Starting around September 30 or October 1, Paramount faces a ticking fee payable to Warner Bros. Discovery shareholders due to the delay.[Variety · CNBC]
What remains uncertain
- Whether Paramount and state officials will resume settlement talks or what specific structural concessions state regulators would demand to resolve the suit remains uncertain.[Variety · CNBC]
- It is unclear whether the court will grant Paramount's petition to require the suing states to post a $1.88 billion bond to cover delay costs.[CNBC]