Paramount Skydance and California AG Discuss Settlement to Unblock Warner Bros. Merger
Paramount Skydance is in advanced negotiations with California Attorney General Rob Bonta to resolve a multi-state antitrust lawsuit that has delayed its proposed acquisition of Warner Bros. Discovery. The talks have included the possibility of keeping the two movie studios operationally separate for a set period, though no agreement is guaranteed. A trial is currently scheduled for March 2027, with a hearing on a bond motion set for September 24.
The proposed $111 billion acquisition, backed by Larry Ellison and sovereign wealth funds from Saudi Arabia, Qatar, and Abu Dhabi, faces opposition from a coalition of 12 states plus the Writers Guild of America. Paramount has sought a $1.88 billion bond from plaintiffs to cover potential losses from a ticking fee owed to WBD shareholders beginning October 1. The FCC recently approved foreign ownership of up to 49.5% of Paramount's equity.
David Ellison has reportedly warned internal executives about relocating operations—potentially to Tennessee, Texas, or Georgia—if the deal cannot close by late September. A bond motion hearing is scheduled for September 24, with the antitrust trial set for March 2027. Bonta has signaled skepticism toward merely operational separation, favoring structural remedies involving separate ownership.
This dispute could reshape the entertainment industry's competitive landscape. If the merger proceeds, consumers may see fewer independent studios and potentially reduced content diversity. Conversely, blocking the deal could preserve current market dynamics but may prompt Paramount to relocate jobs out of California, affecting the state's film economy and workforce. The outcome may also set precedent for how antitrust regulators evaluate media consolidation involving foreign investment, influencing future industry deals.