California AG cancels settlement meeting with Paramount in WBD merger
Attorney General Rob Bonta of California canceled mediation talks with Paramount Skydance regarding it’s proposed $111 billion merger with Warner Bros. Discovery. The lawsuit, led by Bonta along with 11 othre states, alleges the merger would excessively concentrate market power, harming competition in Hollywood. Bonta indicated willingness to settle if the studios made concessions but accused Paramount of leaking and misrepresenting settlement discussions, leading to the cancellation of a scheduled meeting. The dispute escalated amid accusations of bad faith and a threatened studio exit from California. Additionally, tensions arose when Paramount CEO Larry Ellison, who is Jewish, criticized actor Mark Ruffalo for opposing the merger based on anti-Israel sentiments, describing Ruffalo’s comments as “a bridge too far.” Ruffalo responded by calling the accusations “appalling and fundamentally dishonest.” The case remains set for trial in March, with ongoing legal and political conflicts influencing the outcome.
Attorney General Rob Bonta on Sunday canceled mediation talks with Paramount Skydance over its proposed merger with Warner Bros. Discovery, throwing another twist into a monthslong battle over the future of two of Hollywood’s biggest studios.
Paramount had planned a $111 billion acquisition of Warner Bros. But Bonta led California and 11 other states in bringing an antitrust lawsuit to block the deal last month, arguing the merger would wield excessive power across the movie studio and cable television markets, unlawfully weakening competition. A trial for the case is set for March.
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While Bonta had expressed some willingness to settle the case ahead of trial if the companies made significant concessions, the Democratic attorney general over the weekend canceled a meeting with Paramount representatives set for Monday, due to accusations that the studio had leaked details about a previous meeting and is acting in bad faith, according to the New York Times.
“Not only did Paramount leak the alleged substance of settlement discussions, but they misrepresented these discussions, demonstrating a lack of good faith,” Bonta said. “As soon as Paramount stops playing games and engages sincerely, my office is happy to meet again.”
Bonta was expected to begin preliminary settlement talks on Monday after Paramount appeared to threaten to pull out of California by October, triggering concerns over the possible exit from Gov. Gavin Newsom (D-CA). In an interview last week, the attorney general suggested he is open to settling the case before trial, provided Paramount and Warner Bros. make concessions. Bonta had previously claimed the merger would result in “higher costs, fewer options, and fewer people making movies.”
The $111 billion proposed merger has been formally in the works since February.
Ahead of the March trial, possible settlement talks have derailed into accusations of antisemitism. Paramount CEO Larry Ellison, who is Jewish, criticized actor Mark Ruffalo for opposing the merger on the basis of anti-Israel views over the weekend, telling the Los Angeles Times that “words like ‘genocide’ and ‘apartheid,’ applied to a corporate transaction, aren’t just wrong — they’re a bridge too far.”
ROB BONTA CALLS PARAMOUNT’S THREAT TO DITCH CALIFORNIA ‘BLACKMAIL’ TO FORCE SETTLEMENT TALKS
Ruffalo called the accusation “appalling and fundamentally dishonest.”
The Washington Examiner reached out to Bonta’s office for comment.
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