California Attorney General Rob Bonta on Tuesday canceled scheduled settlement talks with Paramount Skydance over the studio’s proposed $111 billion acquisition of Warner Bros. Discovery, citing unauthorized leaks of confidential discussions.
The abrupt reversal came after Bonta’s office accused Paramount of orchestrating leaks that misrepresented the substance of prior negotiations. In a statement, Bonta said Paramount’s actions demonstrated a lack of good faith, adding that the studio had misrepresented discussions to the press. Paramount denied responsibility, stating it shared Bonta’s concerns about misreporting surrounding the deal.
Paramount faces a March trial in the antitrust lawsuit led by Bonta and a coalition of 12 states, which seeks to block the merger. The lawsuit argues the deal would reduce consumer choice, raise prices, and eliminate jobs, citing a Los Angeles County report projecting the loss of 4,500 film and television jobs within three years of the merger. Bonta has demanded major concessions, including the divestiture of cable channels like TBS, TNT, and CNN, to address antitrust concerns.
Paramount has resisted concessions, citing its need for steady cash flow from Warner’s basic cable channels to service $80 billion in debt incurred to finance the acquisition. The company has also faced public pressure, including criticism from actor Mark Ruffalo, whose opposition to the deal prompted Paramount to accuse him of making antisemitic remarks—a claim Ruffalo denied. Jewish organizations later distanced themselves from the studio’s framing of the issue.
Bonta reiterated his position that the merger would harm competition, emphasizing that Paramount must align its proposals with the demands of his office to resume discussions. “If they are willing to clean things up … and engage in a way that is sincere and in good faith, we will be where we always will be … happy to meet,” he said.
The collapse of talks follows Paramount’s public threats to relocate its headquarters from Southern California if the lawsuit proceeds. The company has also overhauled its news division, appointing controversial journalist Bari Weiss as top editor of CBS News and reshaping its flagship program, 60 Minutes, in a move some observers describe as a rightward shift.
Key deadlines loom: The antitrust trial is scheduled for March 2025, with both sides preparing for a prolonged legal battle. The Writer’s Guild of America has also filed a parallel lawsuit, adding another hurdle to the deal’s completion. Paramount has not indicated whether it will adjust its strategy in response to Bonta’s latest move.