By Rajwa Quasim
California Attorney General Rob Bonta has canceled a scheduled meeting with Paramount that was expected to begin settlement discussions over the company’s proposed acquisition of Warner Bros. Discovery. The merger deal is worth $110 billion.
The meeting, which was initially planned for Monday, was called off after Bonnta accused Paramount of leaking details from an earlier discussion held on Aug. 21, saying that the company misrepresented what had been discussed. Bonta said, “Not only did Paramount leak the alleged substance of settlement discussions, but they misrepresented these discussions, demonstrating a lack of good faith. As soon as Paramount stops playing games and engages sincerely, my office is happy to meet again.”
READ: Paramount to exit California as Warner Bros. merger could face antitrust lawsuit (July 13, 2026)
Paramount is trying to merge its movie studio and television operations with WBD, the parent of CNN, HBO, Discovery, the Warner Bros. Studio, and many other assets.
In July, California and 11 other states had filed a lawsuit in Oakland federal court challenging Paramount’s $110 billion acquisition of Warner Bros. Discovery. The states argued that the merger would create a media giant capable of reducing competition, lowering workers’ wages and raising prices for consumers, while also harming movie theaters and basic-cable distributors. States including New York, Minnesota, Arizona, Colorado, Massachusetts, New Jersey, Washington, New Mexico, and Nevada have joined the lawsuit.
According to the states, the merger would give Paramount control of 30% of the blockbuster film distribution market, 27% of the distribution market for films screened across the United States, and 27% of the market for basic cable channels and it would violate anti-trust law and ultimately harm Hollywood by squeezing out competition.
READ: Paramount raises stakes in Warner Bros. deal, offers to pay Netflix exit fee (February 11, 2026)
California has indicated that it would require a significant structural change before considering a settlement, which Bonta referred to as “robust structural remedies.” These could include separating certain assets or spinning off parts of the combined company, with a goal to reduce the influence of the merged company and address California’s antitrust concerns.
A court date for an antitrust trial is scheduled for March 2027. But to Paramount, this wait would cost millions of dollars. If the deal is not completed before October, Paramount must pay Warner Bros. Discovery shareholders roughly $7 million every day until the deal gets cllosed.
Paramount has argued that its acquisition of Warner Bros. Discovery would rather increase competition, while claiming that opponents’ deals are motivated by political concern. Bonta has rejected those claims.