Paramount and the coalition of state attorneys general suing to block its $111 billion acquisition of Warner Bros. Discovery have agreed to sit down for settlement talks Monday, a person familiar with the discussions confirmed, as California Gov. Gavin Newsom weighed in publicly for the first time on a fight that has split Democratic officials over jobs, competition and the future of two studios.
The meeting between Paramount representatives and California Attorney General Rob Bonta’s office marks the most concrete step yet toward resolving litigation that has kept the merger frozen since a federal judge issued a temporary restraining order in July. Bonta led 12 states in filing suit that month, arguing the deal would combine two of Hollywood’s largest studios and drive up prices while shrinking the number of films and shows produced each year. Paramount agreed at the time to delay closing until June 2027 or five days after a court ruling, whichever comes first, with a trial currently set for March in Oakland.
Speaking at a San Francisco press conference Friday, Newsom said he wanted to see the case resolved outside a courtroom, echoing comments Bonta made earlier in the week. “I think there’s some universal sentiment there, if that’s possible. The question is if that’s possible. And what’s the best deal, what’s the landing?” Newsom said, adding that negotiations were already underway. He said he takes seriously a warning from Paramount chief executive David Ellison that the company could relocate outside California absent a settlement, citing concern for the state’s job base and its reputation as an entertainment hub.
Pressure on Bonta to strike a deal has built for weeks. WME executive chairman Ari Emanuel published an op-ed backing the merger, while Los Angeles Mayor Karen Bass, the Directors Guild of America and IATSE have also pushed for resolution. Paramount has offered commitments including 30 films a year for three years with theatrical exclusivity windows, though Bonta’s office has said such behavioral pledges have historically proven difficult to enforce. Starting Oct. 1, Paramount faces a ticking fee of roughly $7 million a day until the deal closes, adding financial urgency to the talks. Opposition remains fierce in some corners of the industry, with more than 5,000 actors, including Jane Fonda and Mark Ruffalo, having signed a letter against the merger.
