Entertainment
California Attorney General Bonta signals openness to Paramount settlement talks despite legal hurdles
Rob Bonta says Paramount must stop leaking details before antitrust talks can resume, while major theater chains line up behind the studio's merger with Warner Bros. Discovery.
The short version
- California Attorney General Rob Bonta canceled a settlement meeting after details leaked, but says he remains open to talks if Paramount stops leaking and agrees to structural remedies.
- Major theater chains AMC, Regal, and Cinemark now support the proposed Paramount-Warner Bros. Discovery merger after Paramount pledged in writing to release 30 films annually for three years with 45-day theatrical windows.
- Legal experts note that customer support from the major chains weakens the states' case, though subpoenaed internal documents and smaller theater circuits could still provide evidence of anticompetitive effects.
- A 12-state antitrust lawsuit led by Bonta currently blocks the acquisition, with a trial scheduled for next spring.
Key facts
- California Attorney General Rob Bonta canceled an August 24 meeting with Paramount after details were leaked to news outlets, accusing the studio of violating confidentiality rules.[Variety · Variety]
- Paramount denied being the source of the leaks and stated it is ready to resume good-faith discussions regarding structural remedies.[Variety]
- Bonta and 11 other state attorneys general filed an antitrust lawsuit on July 13 to block Paramount's acquisition of Warner Bros. Discovery, stalling the deal until at least a trial scheduled for next spring.[Variety · Variety]
- Paramount pledged in writing to release at least 30 films a year for three years with a 45-day theatrical window, securing support for the deal from major chains AMC, Regal, and Cinemark.[Variety]
- Bonta dismissed Paramount's commitment to release 30 films annually as an unenforceable behavioral promise and demanded robust structural remedies across cable, theatrical, and blockbuster film distribution.[Variety]
- Exhibitors trade group Cinema United advocated for a settlement, requesting enforceable safeguards covering film access, marketing budgets, and rental terms.[Variety]
What remains uncertain
- It remains unverified who leaked details about the scheduled meeting between Bonta and Paramount.[Variety]
- It is unknown whether the state attorneys general have sufficient evidence in subpoenaed internal documents to prove anticompetitive harm without the testimony of the largest theater chains.[Variety]
- Paramount has not publicly specified what structural remedies it would accept to resolve the litigation.[Variety]