California AG Scraps Talks With Paramount About WBD Merger: ‘Stop Playing Games’

Jimin Kim/SOPA Images/Sipa USA via AP Images

California’s attorney general has canceled settlement talks with Paramount over its proposed $111 billion takeover of Warner Bros. Discovery, accusing the media giant of leaking and misrepresenting private discussions.

Rob Bonta, whose state is leading a coalition of 12 attorneys general seeking to block the deal, called off a meeting with Paramount representatives late Sunday, according to The New York Times.

The two sides were expected to begin preliminary discussions on Monday about a possible resolution to the lawsuit.

“Not only did Paramount leak the alleged substance of settlement discussions, but they misrepresented these discussions, demonstrating a lack of good faith,” Bonta said in a statement to the newspaper. “As soon as Paramount stops playing games and engages sincerely, my office is happy to meet again.”

The breakdown comes as California officials face mounting pressure over the lawsuit and Paramount has threatened to leave the state if the merger remains blocked.

The proposed acquisition would combine two of Hollywood’s biggest studios alongside major streaming operations and news organizations including CBS News and CNN. California and 11 other states sued last month, arguing the resulting company would wield excessive power across the movie studio and cable television markets.

Bonta has previously indicated that any settlement would require structural remedies, typically involving the sale of parts of the combined company.

California Democrats, including Los Angeles Mayor Karen Bass and Governor Gavin Newsom, have publicly pushed for a resolution as concerns grow about Hollywood jobs and the state’s relationship with the entertainment industry.

The merger is currently paused while the trial is scheduled for March. Paramount will begin owing Warner Bros. shareholders hundreds of millions of dollars in fees if the transaction is not closed by October.

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