Paramount and California AG office set for WBD settlement talks

Paramount representatives are expected to meet California Attorney General Rob Bonta’s office on Monday, Aug. 24, to discuss a possible resolution of the antitrust case challenging its proposed acquisition of Warner Bros. Discovery. The reported paramount california ag wbd settlement talks do not signal an agreement: Bonta has said negotiations will not be productive without structural remedies that address the states’ concerns.

Variety, citing two people familiar with the matter, and CNBC, citing The New York Times, reported that the meeting was planned. Paramount declined to comment to Variety. CNBC said it was unclear whether the discussions would develop into substantive negotiations or yield a settlement.

Bonta led a coalition of 12 state attorneys general that filed suit in July seeking to block the transaction. The states contend the combination would harm competition in theatrical film distribution and basic cable, according to Variety. Those are allegations in the case, which Paramount disputes.

What would a Paramount-WBD settlement require?

Bonta has said the parties would need to put “robust structural remedies” on the table. Structural remedies make one-time changes to a merged company’s assets or organisation, such as divesting businesses or channels. They differ from behavioural remedies, which are commitments about future conduct.

Paramount has pledged to release 30 films in theatres annually for three years and keep those releases exclusive to theatres for at least 45 days, Variety reported. Bonta’s office has argued that commitments of that kind are difficult to enforce. The attorney general has said his office is willing to meet when an opposing litigant makes a good-faith effort to resolve a case, but maintained that discussions without structural proposals would be unproductive.

The talks come as the litigation moves toward a court-led mediation process. Judge Araceli Martinez-Olguin asked the parties to identify two potential magistrate judges who could oversee mediation by the following Wednesday, according to Variety. Screen Daily reported that the antitrust trial is scheduled for March 2, 2027.

Any comprehensive resolution would also have to account for the Writers Guild of America. Variety reported that the guild’s separate lawsuit is set to be heard with the states’ case, and that the WGA would need to participate in a global settlement.

The reported meeting therefore offers an opportunity to test whether the parties can bridge the gap between Paramount’s commitments on future operations and California’s demand for changes to the combined company’s structure. It does not establish that either side has accepted terms or that the lawsuit will be resolved before trial.

This story draws on original reporting from CNBC.