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4h ago

California Cancels Merger Talks and Accuses Paramount of Leaking Negotiations

The abrupt halt to settlement talks raises the odds the states will press their March 2, 2027 antitrust case to trial and leaves mounting financial pressure on Paramount to resolve the deal.

LOS ANGELES, CALIFORNIA - FEBRUARY 23: An aerial view of the Paramount logo on the water tower at Paramount Studios on February 23, 2026 in Los Angeles, California. Paramount Skydance is poised to increase its takeover offer for Warner Bros. Discovery above Netflix’s current bid, setting up a high-stakes bidding war that could see Netflix walk away from the deal if outbid. (Photo by Justin Sullivan/Getty Images)
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Overview

  • California Attorney General Rob Bonta canceled a planned meeting with Paramount on Monday, saying the company leaked and misrepresented details from a private Friday session and showed a lack of good faith.
  • The cancellation pauses a court‑encouraged mediation track and leaves the 12‑state lawsuit, led by California, as the main obstacle to Paramount’s roughly $110–$111 billion acquisition of Warner Bros. Discovery.
  • Paramount faces growing financial strain: a contractual 'ticking fee' will begin on October 1 that would cost roughly $7 million per day and the company has asked the court to require the plaintiffs to post a $1.88 billion bond, with a hearing set for September 24.
  • State prosecutors say any settlement must include robust structural remedies such as divesting select cable channels and keeping film studio operations separate, demands Paramount has signaled it may resist.
  • If talks do not resume, the case will go to a 12‑day trial starting March 2, 2027 in Oakland, a fight that could reshape studio and cable markets and affect thousands of California entertainment jobs.