Settlement discussions involving the parties tied to the Paramount-WBD merger broke off immediately on Monday, delaying any hopes of a resolution.
California Attorney General Rob Bonta, who launched a lawsuit to block the merger alongside 12 state attorneys general, canceled a meeting on Monday citing a “lack of good faith” by the Paramount side. The Wall Street Journal reports that the lawyers on each side met on Friday to review what would be addressed at the formal meeting.
Details of the discussion were leaked, prompting Bonta to cancel Monday’s meeting and stating:
Paramount did not maintain the confidentiality of that meeting,” Bonta said in a statement late Sunday night.
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.
Paramount denied being the source of the leak:
We share AG Bonta’s concerns about the public discussions and misreporting that have surrounded this deal. 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.
A judge has set a date for March 2027 for the case to go to trial. If a settlement isn’t reached by October 1, a ticking fee will activate whereby Paramount will be required to pay approximately $7 million per day to WBD shareholders.
The WSJ reports that Bonta is seeking divestitures by Paramount, including cable channels and maintaining Warner Bros. as a separate movie studio from Paramount.
Paramount+ is in the first year of a seven-year pact with the UFC worth $7.7 billion, while WBD has a media rights deal with AEW through the end of 2027 with an option for an additional year.
