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[BUSINESS] · United States · 51 sources

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Paramount Skydance merger talks stall as California AG accuses studio of bad faith

California Attorney General Rob Bonta has abruptly canceled scheduled settlement talks with Paramount Skydance, accusing the company of acting in bad faith. The cancellation follows a preliminary meeting on August 21, which Bonta claims Paramount leaked and misrepresented to the press.

Paramount has denied being the source of any leaks, stating they remain ready to engage in good-faith negotiations. The legal battle centers on Paramount’s proposed $110 billion acquisition of Warner Bros. Discovery. A coalition of 12 states, led by California, filed an antitrust lawsuit in July to block the deal, arguing it would create an illegal monopoly in film distribution and cable television.

To resolve the suit, Bonta has indicated that robust structural remedies are necessary. These could include the divestiture of certain cable channels and requirements to keep the Warner Bros. movie studio separate from Paramount. Paramount CEO David Ellison has attempted to mitigate concerns by committing to annual film production minimums and maintaining theatrical windows.

Financial pressure is mounting for Paramount. If the merger is not finalized by October 1, the company faces daily ticking fees of approximately $7 million payable to Warner Bros. Discovery shareholders. An antitrust trial is currently scheduled for March 2027.

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

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