California Attorney General Rob Bonta canceled a planned meeting with Paramount representatives on Monday, accusing the company of acting in bad faith during early discussions over a possible settlement of the state’s lawsuit seeking to block Paramount’s acquisition of Warner Bros Discovery (WBD).
Bonta said his office met with Paramount on Friday but called off a follow-up meeting scheduled for Monday after details of the initial discussion were leaked.
“My office had a meeting with Paramount on Friday,” Bonta said in a statement. “Paramount did not maintain the confidentiality of that meeting. Not only did Paramount leak the alleged substance of settlement discussions, but they misrepresented these discussions, demonstrating a lack of good faith.”
Bonta said his office remained open to future talks if the company changed its approach.
“As soon as Paramount stops playing games and engages sincerely, my office is happy to meet again,” Bonta said.
Spokespeople for Paramount and WBD declined comment Monday. The Wall Street Journal over the weekend disclosed some of the settlement discussion topics, including a possible requirement that Paramount divest some TV channels. The newspaper didn’t report where the information came from, citing anonymous sources, though it has published a number of exclusives focused primarily on Paramount that didn’t involve Bonta’s office in the past, suggesting the information came from people connected to the entertainment company.
The canceled meeting marks a setback for efforts to resolve one of the biggest remaining obstacles to Paramount’s proposed acquisition of WBD. California is leading a coalition of 12 state attorneys general that sued in July to block the transaction, arguing the deal would create a media company with too much power across cable television and movie studios.
aramount has rejected the lawsuit’s claims, describing the case as a misrepresentation of competition and arguing the merger is necessary to give the company greater scale against larger technology and streaming rivals.
In an interview with CNBC last week, Bonta said he was willing to negotiate a settlement, saying his office preferred to resolve cases outside the courtroom when possible. But he also said any resolution would require “robust structural remedies,” which typically means requiring divestitures or other changes to the combined business.
That position could complicate settlement talks. Companies involved in major mergers often resist structural remedies because deal economics are built around the combined assets, cost savings and broader strategic assumptions.
The stakes are significant for Paramount. The company has agreed to delay closing the WBD transaction until as late as June 2027 while the case proceeds. A trial is scheduled for March. If the deal is not closed by October, delays could trigger hundreds of millions of dollars in fees owed to WBD shareholders.
The dispute has also drawn increasing political attention in California: Los Angeles Mayor Karen Bass said last week that uncertainty around the merger had contributed to stalled productions and job losses in Hollywood, calling for a “swift and urgent resolution.” Xavier Becerra, a Democratic candidate for California governor, has also said he would like to see the case settled.
Governor Gavin Newsom said Friday that he takes Paramount’s threat to leave California seriously.
“I’m concerned about the state, our reputation,” Newsom said. “I want to see Hollywood thrive.”
