Paramount and California A.G. Expected to Discuss Settlement on Monday

Key Points:

• Paramount Skydance representatives are scheduled to meet with the California Attorney General’s office to discuss a potential settlement in the states’ antitrust case challenging Paramount’s $111 billion merger with Warner Bros. Discovery.
• The merger, which would combine two major Hollywood studios and cable programmers, is currently on hold pending a March trial in federal court, with concerns focused on reduced competition in theatrical distribution and basic cable.
• Attorney General Rob Bonta, leading a 12-state coalition, is open to settlement but has criticized Paramount for not offering adequate structural remedies, while Paramount has proposed behavioral commitments like producing 30 films annually and maintaining a 45-day theatrical exclusivity window.
• Various industry groups and public officials, including the Directors Guild of America, IATSE, and Los Angeles Mayor Karen Bass, have expressed support for settling the case out of court, reflecting a preference to resolve the dispute in the boardroom rather than the courtroom.
• The Writers Guild of America has filed a related lawsuit that will be tried alongside the states’ case, and any settlement efforts will need to include the WGA to achieve a comprehensive resolution.