LOS ANGELES, CA — State Attorney General Rob Bonta said Tuesday that no settlement talks are currently scheduled with Paramount over a multistate antitrust lawsuit seeking to block the company's proposed $110 billion acquisition of Warner Bros. Discovery.
Bonta canceled a meeting with Paramount representatives that had been scheduled for Monday after details of confidential settlement discussions were leaked to the media, an action he called "unacceptable."
"If they are willing to clean things up ... and engage in a way that is sincere and in good faith, we will be where we always will be with any party in any case that we're involved in, which is happy to meet," Bonta said during a news conference Tuesday in Los Angeles.
Bonta said Monday that he believed Paramount was "playing games," accusing the company of leaking and misrepresenting details of settlement discussions held last week.
Paramount has denied being the source of the leaks.
"We share AG Bonta's concerns about the public discussions and misreporting that has surrounded this deal," according to the company. "As we have assured the Attorney General's office, Paramount has not been the source of the leaks of any of our confidential discussions with the AG's office. We remain hopeful and stand ready to continue good faith discussions to resolve the attorneys general suit and move forward with our plans for increased competition and increased output to the benefit of the talent and entertainment workers."
Bonta has called the proposed merger illegal and said it would result in higher prices, lower content quality and fewer movies and television shows.
Paramount CEO David Ellison said in an Aug. 14 statement that the merger "will create a stronger competitor with greater capacity to invest in premium content, support creative talent and workers, and deliver more high- quality entertainment to audiences."
The U.S. Department of Justice completed its review of the proposed transaction June 12 without seeking to block it, but Bonta and 11 other state attorneys general filed a federal antitrust lawsuit in July seeking to stop the deal.
Under an agreement reached in the case, Paramount and Warner Bros. cannot complete the transaction until June 1, 2027, or until after a court decision is made on the states' claims, whichever occurs first. A trial is scheduled for March 2027.
Gov. Gavin Newsom, Los Angeles Mayor Karen Bass and Xavier Becerra, the Democratic candidate for governor, are among Bonta's fellow Democrats who have called for the parties to negotiate a resolution.
City Councilwoman Nithya Raman, who is challenging Bass in the Nov. 3 mayoral election, has opposed a settlement that would allow the transaction to proceed under its current terms.
"This is a bad deal for entertainment workers and a bad deal for Los Angeles," Raman said. "That's why I support Attorney General Rob Bonta's antitrust lawsuit and stand with the workers fighting this merger."
The Writers Guild of America criticized Bass for calling for a settlement.
"We are disappointed that Mayor Bass has chosen to join Paramount's pressure campaign on public enforcers, to push through a merger that is being rightfully challenged as illegal and will lead to job losses in the entertainment industry," the WGA said in a statement to Deadline Hollywood. "Her statement comes on the heels of a county report estimating thousands of jobs will be lost if the merger proceeds."
City News Service
Sign up for free local newsletters and alerts for the
Hollywood Patch
Patch.com is the nationwide leader in hyperlocal news.
Visit Patch.com to find your town today.