California Attorney General Rob Bonta announced Tuesday that no settlement talks are currently scheduled with Paramount Skydance concerning the antitrust lawsuit aimed at blocking the studio's proposed $110 billion acquisition of Warner Bros. Discovery. The cancellation follows the leak of confidential settlement discussion details to the press, which Bonta described as "unacceptable."
Bonta stated that his office would be open to resuming discussions if Paramount Skydance is willing to "clean things up" and engage "sincerely and in good faith." He had canceled a meeting scheduled for Monday after confidential settlement discussions were revealed publicly.
Paramount has been seeking a settlement in the case, which, along with a parallel lawsuit from the Writer's Guild of America, represents the final obstacles to the Warner Bros. Discovery deal. The studio faces significant costs to maintain the deal if Bonta's lawsuit proceeds to a trial scheduled for March. Both Bonta and other states have secured key rulings that could provide leverage in future settlement negotiations.
A spokesperson for Paramount stated that the company shares Bonta's concerns regarding "misreporting" that has surrounded the deal and denied being the source of the leaks.
Bonta reiterated his concerns that the merger of two major film studios could lead to increased prices for consumers, reduced choices, and lower quality in film and television programming. He also referenced a report from Los Angeles County predicting the loss of 4,500 film and television jobs within three years of the companies combining operations, potentially impacting the local economy.