Paramount and California Attorney General Rob Bonta are scheduled to meet Monday for crucial discussions regarding a potential settlement in the state's antitrust case against the company.
The lawsuit, filed by Bonta and 11 other state attorneys general, aims to halt Paramount's proposed $111 billion merger with Warner Bros. Discovery. The merger is currently on hold pending a trial scheduled for March in federal court in Oakland.
Both Paramount and the attorneys general have expressed openness to a settlement, but an agreement has not yet been reached. Bonta indicated on Thursday that "robust" concessions from Paramount CEO David Ellison would be necessary to address potential anticompetitive risks associated with the merger. "If Ellison and Paramount want to come to the table in good faith and talk, we want to talk, too. We’re happy to have that conversation," Bonta stated.
Bonta has characterized the merger as "unlawful," warning it could lead to "higher prices, lower quality, and less content for film and television, harming movie theaters, basic cable distributors, and ultimately, audiences on every sofa and movie theater seat in the U.S."
Paramount is reportedly eager to finalize a settlement, as a prolonged legal battle could incur an additional cost of $7 million per day until the deal is closed. Paramount is said to have requested Monday's meeting, which will include senior executives and lawyers from Paramount, along with top legal counsel from the attorney general's office, according to The New York Times.
Paramount has proposed commitments, such as pledging to produce 30 films annually for the next three years, in an effort to advance the deal, but these proposals have not satisfied Bonta.
In response to the lawsuit, Paramount has reportedly considered relocating its Hollywood studios from California. Ellison has informed his executives about the possibility of moving the company's base to Tennessee, Texas, or Georgia, with Austin, Texas, being a potential new headquarters.
Given the significant economic impact on California and the entertainment industry, the outcome of these high-stakes talks is being closely watched by prominent state figures. Governor Gavin Newsom and Los Angeles Mayor Karen Bass have both urged for a settlement to avert a protracted and expensive legal process. "While there are varying perspectives on the proposed transaction, today we are united around one clear message: It is time for all parties to come to the table," Bass previously said. "The continued uncertainty is not good for workers, not good for productions and not good for the future of this industry."