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California Attorney General Rob Bonta accused Paramount\u2019s leadership of leaking information and acting in bad faith as he canceled a planned meeting with the media giant\u2019s executives scheduled for Monday to discuss a potential settlement in the state\u2019s antitrust suit to block Paramount\u2019s acquisition of Warner Bros. Discovery.<\/p>\n
The California Attorney General accused Paramount’s leadership of “demonstrating a lack of good faith.”<\/p>\n
Getty ImagesKey Facts<\/p>\n
In a statement shared with Deadline<\/a> and the New York Times<\/a> early on Monday, Bonta said Paramount leaked \u201calleged substance of settlement discussions.\u201d<\/p>\n The California AG accused the media conglomerate of misrepresented their discussions in these leaks and also \u201cdemonstrating a lack of good faith.\u201d<\/p>\n Bonta\u2019s statement, however, left the door open for future talks saying that his office is happy to meet the company\u2019s executives as soon as \u201cParamount stops playing games and engages sincerely.\u201d<\/p>\n Paramount has not publicly commented on the California Attorney General\u2019s remarks.<\/p>\n Monday\u2019s talks were not expected to bring about an immediate resolution in the case, but it was set to take place on the backdrop of California Gov. Gavin Newsom saying he would prefer a settlement amid Paramount\u2019s threats to leave California.<\/p>\n tangent<\/p>\n Although Bonta\u2019s statement didn\u2019t specify what leaks he was talking about, the Wall Street Journal reported<\/a> on Sunday night that Bonta was expected to ask Paramount to divest some cable networks and make a commitment to keeping its movie studio separate from Warner as part of the settlement. Citing an unnamed source, the Journal reported that lawyers from the company and the AG\u2019s office met last week to discuss the agenda for Monday\u2019s meeting. The report noted that Paramount is unlikely agree to either selling off its cash generating cable channels or keep Warner\u2019s studio business separate. An industry source cited by Deadline<\/a> in an earlier report said the the issue has turned into a game of \u201cPR chicken\u201d with Paramount CEO David Ellison believing they could force Bonta to back off \u201cwith threats and intimidation,\u201d mainly the threat to leave California. The report noted that the states suing to block the merger have raised doubts about the feasibility of one of the promises made by Ellison, of releasing 30 theatrical films every year. <\/p>\n What Have California Leaders Said About The Case?<\/p>\n At a press conference last week, California Gov. Gavin Newsom<\/a> said he would prefer a settlement be reached in the multi-state lawsuit opposing Paramount\u2019s acquisition of Warner \u201cif it\u2019s a good deal.\u201d Newsom said the matter has to \u201cworked through\u201d and added that he was \u201cconcerned about the state, our reputation.\u201d Newsom\u2019s remarks come amid Paramount\u2019s threat to leave the state and the Democratic Governor\u2014who is considered one of the front runners for the Democratic Party\u2019s presidential nomination in 2028\u2014said he is taking the threat seriously. \u201cI hope that doesn\u2019t happen, and I\u2019m of the belief that they don\u2019t want to see that happen,\u201d acknowledging that such a departure could have a major impact on Hollywood. Xavier Beccera, the Democratic candidate for this year\u2019s California Gubernatorial election and former California AG, also said he would prefer a settlement. \u201cI hope it settles before court. It is easier to stand in a conference room and settle than it is to stand in a courtroom,\u201d Beccera said during a Politico event<\/a> earlier this month. Los Angeles Mayor Karen Bass has also come out in favor<\/a> of a settlement.<\/p>\n key background<\/p>\n Paramount\u2019s $110 billion deal to acquire Warner Bros Discovery hit a major bump last month after a group of 12 Democratic states, including California, sued to block<\/a> the merger. While announcing the suit, Bonta said the deal would result in \u201chigher prices, lower quality, and less content for film and television.\u201d Later that month, a federal judge temporarily paused<\/a> the merger from going through, saying the states had raised \u201cserious questions\u201d about the deal\u2019s impact. The ruling was a costly blow for the Ellison-led company, which is liable to pay a ticking fee of around $7 million per day<\/a> or $650 million per quarter if the deal doesn\u2019t close by the end of September. A few days later, Paramount said it had agreed to push back<\/a> the merger to June 2027 or until five days after the judge makes a decision on the states-led case.<\/p>\n further reading<\/p>\n