Paramount Skydance is scheduled to engage in court-ordered settlement negotiations with representatives of California Attorney General Rob Bonta on October 14 and 15, as both parties seek to resolve ongoing disputes that could pave the way for David Ellison’s $111 billion acquisition of Warner Bros. Discovery.
The planned talks come amid legal challenges initiated in July by Bonta and 11 other Democratic state attorneys general who are attempting to block the merger, which would consolidate major media assets including HBO, CBS, CNN, TBS, Food Network, Comedy Central, and the Paramount and Warner Bros. studios under a single corporate entity. The proposed deal represents a significant restructuring of Hollywood's entertainment landscape.
Tensions between Bonta’s office and Paramount intensified last month after a scheduled negotiation session was canceled following leaks of preliminary discussion details that Bonta accused Paramount of breaching confidentiality agreements and disseminating misinformation. The lawsuit filed by Bonta also contrasts with the earlier stance of the U.S. Department of Justice, which had approved the merger in June without imposing conditions, a decision Bonta criticized as a failure to adequately enforce antitrust laws.
This week, the Justice Department intervened in favor of Paramount’s position, submitting a filing that emphasized the federal government’s distinct authority in enforcing antitrust regulations. The department argued that, as private plaintiffs, Bonta and the other states face more stringent legal requirements than the federal government. Additionally, the department requested the court compel California, the other states involved, and the Writers Guild of America to post a $1.88 billion bond. This bond would cover “ticking fees” owed by Paramount to Warner Bros. Discovery shareholders if the merger does not close by October 1—a financial commitment Paramount accepted earlier this year amid confidence in regulatory approval.
Bonta’s office reaffirmed on Wednesday that it does not believe it should be responsible for the bond payments, with a court hearing on the matter scheduled for September 24.
Paramount’s legal efforts are being led by Makan Delrahim, former head of the Department of Justice’s antitrust division under the Trump administration. Delrahim previously attempted to block AT&T’s 2018 acquisition of Warner Bros. Discovery’s predecessor, Time Warner Inc., marking the first of several ownership changes that have contributed to the company’s recent financial and strategic challenges and setting the stage for the current acquisition bid.
The proposed merger has also drawn political attention from former President Donald Trump, who has expressed support for Ellison’s company, particularly in relation to taking on Warner Bros. properties such as CNN. Ellison’s restructuring efforts follow similar initiatives at CBS News, a division that has experienced audience declines at flagship programs like “60 Minutes.”
To date, Ellison’s acquisition plan has secured approval from more than 65 international regulatory bodies, and Paramount expects the Federal Communications Commission—led by Trump appointees—to approve a foreign ownership structure granting Middle Eastern royal families nearly 50 percent equity in the combined company. With Bonta’s lawsuit remaining the final hurdle, the forthcoming settlement talks could be crucial in determining the deal’s fate.