Paramount Skydance is in advanced negotiations with California Attorney General Rob Bonta to settle the multistate antitrust lawsuit that has been blocking its $111 billion takeover of Warner Bros. Discovery, according to a report Friday in the Wall Street Journal citing anonymous sources. A Paramount spokesperson declined to comment on the talks. A representative for Bonta's office said only that «potential settlement talks are confidential.»
The lawsuit, brought by 12 state attorneys general, has held up the merger since it was announced. The states argue that combining Paramount's film and television assets with Warner Bros. Discovery would create an entertainment giant with excessive market power across production, distribution, and streaming. The deal, valued at $111 billion, would unite two of Hollywood's most storied studios under the leadership of David Ellison, who took control of Paramount through its merger with Skydance.
While the Journal characterized the discussions as «advanced,» a separate report from Deadline painted a more cautious picture. According to that account, Paramount and the state attorneys general have begun preliminary talks ahead of settlement meetings scheduled for October, but the negotiations are «far from advanced.» The conflicting descriptions suggest that while both sides are at the table, a final agreement remains uncertain and could still collapse.
The antitrust suit represents the most significant remaining regulatory hurdle for the merger. Even if Paramount reaches a settlement with the states, the deal could still face scrutiny from federal regulators or other parties. The states involved have not publicly detailed their specific demands, but antitrust settlements in media mergers typically involve commitments related to pricing, access to content, or divestitures of certain assets.
Paramount's takeover of Warner Bros. Discovery would reshape the entertainment landscape, bringing together franchises such as Mission: Impossible, Star Trek, and Transformers with Warner's DC Comics universe, Harry Potter, and HBO. The combined company would control a vast library of film and television content, giving it significant leverage in negotiations with theaters, streaming platforms, and advertisers.
For consumers, the merger could lead to changes in how content is packaged and priced across streaming services. Paramount+ and Max, Warner's streaming platform, could be bundled or merged, potentially altering subscription costs and content availability. The states' antitrust concerns likely center on whether such consolidation would reduce competition and harm consumers.
Bonta's office has been active in scrutinizing large media mergers, reflecting a broader trend of state attorneys general taking a more aggressive role in antitrust enforcement. The outcome of these talks could set a precedent for how similar deals are handled in the future.
Neither Paramount nor Bonta's office has provided further details on the timing or terms of a potential settlement. The October meetings are expected to be a critical juncture. If a settlement is reached, the merger could proceed after remaining regulatory reviews. If talks fail, the lawsuit could continue, potentially delaying or derailing the deal entirely.
Paramount has not commented publicly on the status of negotiations beyond declining to comment. The company has previously expressed confidence that the merger would ultimately be completed, but the antitrust suit has introduced significant uncertainty. Investors and industry observers are closely watching the talks for signs of a resolution.
The merger, first announced earlier this year, has already cleared some regulatory hurdles, but the state lawsuit remains a major obstacle. The 12 states involved have not been named in the reports, but the coalition is led by Bonta, who has a track record of challenging large corporate combinations. The coming weeks will determine whether the parties can bridge their differences or whether the dispute will head to court.