Paramount, California AG to meet over possible settlement in $110B Warner Bros. Discovery merger lawsuit

Representatives for Paramount Skydance and California Attorney General Rob Bonta's office are expected to meet Monday to discuss a potential resolution to the lawsuit seeking to block Paramount's $110 billion acquisition of Warner Bros. Discovery, according to reports. The talks come as the transaction remains on hold under a court agreement and the companies face a March 2027 antitrust trial unless the dispute is resolved sooner.

The discussions are expected to focus on whether there is a path toward resolving the states' antitrust case. FOX Business has reached out to Paramount and Bonta's office for comment.

Bonta led a coalition of 12 state attorneys general in filing the lawsuit in July, alleging the combination would reduce competition in theatrical film distribution and basic cable programming.

The states argue the merger would combine two of Hollywood's five major film distributors and give the combined company roughly 27% of the wide-release theatrical film market. They also allege it would control more than 30% of anticipated top-grossing theatrical films and about 27% of the market for licensing basic cable channels.

Paramount and Warner Bros. Discovery have rejected the states' view of the transaction, arguing the combination would strengthen competition in a rapidly changing media industry.

Bonta signaled openness to a possible resolution in a CNBC interview Thursday but said any settlement would require "robust structural remedies." "We do prefer to resolve cases in the boardroom instead of the courtroom," Bonta told CNBC , while saying the states remain focused on the markets outlined in their complaint.

Under a July 24 court stipulation, Paramount and Warner Bros. Discovery agreed not to close the deal or begin integrating their operations until five days after a ruling on the merits or June 1, 2027, whichever comes first.

U.S. District Judge Araceli Martínez-Olguín has scheduled a 12-day trial beginning March 2, 2027. In an Aug. 4 scheduling order, the judge also encouraged the parties to identify potential magistrate judges to oversee a settlement conference.

Paramount agreed in February to acquire Warner Bros. Discovery for $31 per share in cash, valuing the transaction at roughly $110 billion including debt. Under the merger agreement, Warner Bros. Discovery shareholders begin accruing additional consideration if the transaction remains unclosed after Sept. 30.

The companies have said the combination would create a stronger global media competitor while maintaining both film studios and producing at least 30 theatrical films annually.