Settlement talks between Paramount and a coalition of state attorneys general paused Monday for Yom Kippur without a deal, as some officials press for stricter conditions than the coalition’s leader, California Attorney General Rob Bonta, is said to be weighing.
Twelve states sued in July to block Paramount’s roughly $110 billion acquisition of Warner Bros. Discovery. They argue the combined company would hold about 27 percent of the wide-release theatrical market and over 30 percent of anticipated top-grossing films. Paramount and Warner Bros. Discovery reject that view, saying the merger would sharpen competition in a rapidly changing industry. A trial is set for March 2, 2027.
Paramount has reason to hurry. It owes Warner Bros. Discovery shareholders an extra $7 million a day starting Oct. 1 if the deal has not closed.
Negotiators spent the weekend on potential terms, according to people familiar with the talks. The list included running Warner Bros.’ studio separately for a time, releasing at least 30 films in theaters each year with financial penalties for missing the mark, a binding pledge to keep Paramount’s California operations in the state, and a third-party editorial adviser for CNN and CBS News. Paramount CEO David Ellison has already publicly made several of those commitments.
Other states want more. New York Attorney General Letitia James is seeking job protections, including for Warner Bros. employees. Paramount has projected $6 billion in savings from the merger, a figure that implies thousands of layoffs. Connecticut Attorney General William Tong wants firmer guarantees of independence for CNN and CBS News than an adviser could provide. Minnesota’s Keith Ellison, no relation to David, has emerged as a leading voice against the current terms, according to reports, and Washington’s Nick Brown is said to share the concerns.
Bonta has previously described behavioral remedies such as separate operations as weak and hard to enforce, and he has argued for separate ownership.
Outside pressure is building. The Block the Merger Coalition, an alliance of Hollywood unions and advocacy groups, scheduled protests outside Bonta’s Los Angeles office Sunday, James’s New York office Monday and the Writers Guild of America West headquarters Tuesday. The group argues that concessions the states cannot enforce would benefit only Ellison. Connecticut Sen. Chris Murphy urged the attorneys general to keep fighting.
