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[BUSINESS] · United States · 7 sources

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Paramount and California officials to hold settlement talks over Warner Bros. Discovery merger

Paramount and California officials are scheduled to hold preliminary settlement talks on Monday to address an antitrust lawsuit filed by California and eleven other states. The legal action seeks to block Paramount’s proposed $110 billion acquisition of Warner Bros. Discovery, citing concerns that the merger would reduce competition, increase consumer costs, and lead to job cuts in the media and entertainment sectors.

California Attorney General Rob Bonta has indicated that any potential resolution must include robust structural remedies. Reports suggest Bonta may ask Paramount to divest certain cable networks to mitigate market concentration. To avoid a protracted legal battle and significant financial penalties, Paramount has agreed to delay the merger until June 2027, or until the legal dispute is resolved.

Failure to finalize the deal could trigger substantial quarterly ticking fees, estimated at approximately $650 million, payable to Warner Bros. Discovery shareholders. While the meeting aims to explore a settlement, sources remain cautious about whether significant progress will be made during these initial discussions.

Entities

California · David Ellison · Paramount · Paramount Global · Paramount Skydance · Rob Bonta · Warner Bros. Discovery

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