California Attorney General Rob Bonta canceled a meeting planned with representatives of Paramount Skydance aimed at starting preliminary discussions of a possible settlement of the state’s lawsuit seeking to block the company’s proposed acquisition of Warner Bros. Discovery.
In a statement, Bonta said the meeting scheduled for Monday was canceled after what he called a confidentiality issue stemming from a Friday meeting between his office and Paramount Skydance.
“As I’ve said before, generally for all cases, I prefer to resolve disputes in the boardroom, not the courtroom,” Bonta said. “As I’ve also said, if the opposing party in litigation wants to meet in good faith to make a sincere effort to resolve the case, we’ll meet.
“My office had a meeting with Paramount on Friday. Paramount did not maintain the confidentiality of that meeting. 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.”
A Paramount Skydance spokesperson provided the following statement later Monday morning.
“We share AG Bonta’s concerns about the public discussions and misreporting that has surrounded this deal,” the spokesperson said. “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, claiming it would lead to higher prices, lower quality content and fewer films and TV productions.
In an Aug. 14 statement, 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 proposed merger was reviewed June 12 by the U.S. Department of Justice. 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 on the states’ claims, whichever occurs first. A trial is scheduled for March 2027.
Last week, a report from the Los Angeles County Department of Economic Opportunity and L.A. County Film Office estimated a total of 10,360 job-years could be at risk due to the merger, including direct film and television jobs and employment supported by production spending. A job-year is the equivalent of one full-time job lasting one year, according to the report.