Court to Hold Paramount-W.B. Settlement Conference in Late October

Key Points:

• A two-day court settlement conference for the Paramount-Warner Bros. antitrust case is scheduled for late October, overseen by Magistrate Judge Thomas Hixson, to explore the possibility of avoiding a trial set for March in Oakland.
• Paramount is seeking a deal with California Attorney General Rob Bonta before Oct. 1 to avoid paying a $7 million daily "ticking fee" to Warner Bros. shareholders, while Bonta insists on "robust structural remedies," likely involving asset divestitures.
• The lawsuit, supported by California and 11 other states, alleges the $111 billion merger will harm competition in theatrical and basic cable markets, prompting demands for terms addressing both sectors.
• Previous settlement talks were canceled by Bonta due to accusations of leaks by Paramount, which Paramount denied; the parties have now been ordered to propose dates for in-person talks in late October.
• Paramount agreed not to close the merger before the March trial but has requested the plaintiffs post a $1.88 billion bond to cover delay costs, a motion contested by the states and scheduled for a hearing on Sept. 24.