Sources Say Paramount, California AG in Advanced Settlement Talks
Paramount Skydance and California Attorney General Rob Bonta are in advanced settlement talks over the antitrust suit blocking Paramount's takeover of Warner Bros. Discovery. The Wall Street Journal first reported the negotiations Friday, citing anonymous sources.
- $7 million per day in penalties begin October 1 if the deal remains unclosed.
- 12 states, plus the Writers Guild of America, are parties to the antitrust suit.
- Paramount requested a $1.88 billion bond from the states; Bonta has rejected it.
- Ellison has floated moving company operations to Tennessee, Texas, or Georgia.
Why it matters: The lawsuit is the central obstacle to an $111 billion deal reshaping two of the largest media companies in the country.
- California Democratic officials, including Gov. Gavin Newsom and Los Angeles Mayor Karen Bass, have publicly urged Bonta to settle.
- FCC approved allowing 49.5% of Paramount's equity to be held by foreign entities if the WBD deal closes.
How 5 sources split on this story
Where they split: The core dispute is whether a temporary agreement to keep Paramount and WBD studios operating separately satisfies Bonta's antitrust concerns — Bonta has previously said it does not.
Left coverage, 2 sources: The left frames the story around the legal status of the antitrust proceedings, noting Bonta's prior rejection of the separation compromise and the scheduled March 2027 trial as the relevant legal backdrop.
Right coverage, 1 sources: The right frames the story around Paramount's political leverage — Democratic officials breaking with Bonta, Ellison's threats to leave California, and the AG's isolated position within his own party.
What’s next: A bond motion hearing is scheduled for September 24.
- Paramount, Bonta's office, and the Writers Guild announced two days of structured talks targeting a resolution next month.
- A trial is set for March 2027 if talks fail.
- Would Bonta accept a temporary operational separation of studios as a settlement term, having previously rejected that idea?
- Will Paramount follow through on a California exit if no deal is reached by end of September?