Paramount and California Attorney General to Discuss Settlement in $110 Billion Warner Bros. Discovery Merger Dispute

A federal judge has temporarily halted Paramount’s proposed $110 billion acquisition of Warner Bros. Discovery.

Representatives from Paramount Skydance and the office of California Attorney General Rob Bonta are scheduled to convene on Monday to explore a potential settlement in the lawsuit aiming to block Paramount’s $110 billion acquisition of Warner Bros. Discovery, according to recent reports.

These discussions occur as the transaction remains suspended under a court agreement, with the companies facing an antitrust trial in March 2027 unless an agreement is reached beforehand.

Variety initially reported the anticipated meeting on Friday, citing sources familiar with the matter. The negotiations are expected to center on finding a viable path to resolve the states’ antitrust case.

In July, Bonta spearheaded a coalition of 12 state attorneys general in filing the lawsuit, asserting that the consolidation would diminish competition in theatrical film distribution and basic cable programming.

California Attorney General Rob Bonta believes Paramount’s planned takeover of Warner Bros. Discovery is simply “an illegal merger.”  (AaronP/Bauer-Griffin/GC Images / Getty Images)

The states contend that the merger would unite two of Hollywood’s five major film distributors, granting the combined entity approximately 27% of the wide-release theatrical film market. They further allege it would control over 30% of anticipated top-grossing theatrical films and about 27% of the basic cable channel licensing market.

Paramount and Warner Bros. Discovery have dismissed the states’ perspective on the transaction, arguing that the consolidation would actually bolster competition within a rapidly evolving media landscape.

An aerial view of the sun rising beyond the water tower at Paramount Studios on Oct. 30, 2025, in Los Angeles, California.  (Mario Tama/Getty Images / Getty Images)

During a CNBC interview on Thursday, Bonta expressed willingness to consider a potential resolution but emphasized that any settlement would necessitate “robust structural remedies.”

“We do prefer to resolve cases in the boardroom instead of the courtroom,” Bonta stated, while noting that the states remain focused on the markets detailed in their complaint.

Pursuant to a court stipulation dated July 24, Paramount and Warner Bros. Discovery agreed to refrain from finalizing the deal or initiating operational integration until five days after a merits ruling or June 1, 2027, whichever occurs first.

California Attorney General Rob Bonta. (Sarah Reingewirtz/MediaNews Group/Los Angeles Daily News via Getty Images / Getty Images)

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

In February, Paramount agreed to acquire Warner Bros. Discovery for $31 per share in cash, valuing the transaction at approximately $110 billion, including debt. Under the terms of the merger agreement, Warner Bros. Discovery shareholders will begin accruing additional compensation if the transaction remains incomplete after September 30.

The companies have maintained that the consolidation would establish a more robust global media competitor while retaining both film studios and producing a minimum of 30 theatrical films annually.

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