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Paramount and California AG in Advanced Talks to Settle Antitrust Suit

Variety • September 18, 2026 • general

Key Points:

Paramount Skydance, led by David Ellison, is in advanced settlement talks with California Attorney General Rob Bonta to resolve a 12-state antitrust lawsuit blocking its acquisition of Warner Bros. Discovery, according to the Wall Street Journal.
The discussions include potential compromises such as operating the two companies' movie studios separately for a period, but Bonta has indicated he prefers a structural remedy involving separate ownership rather than behavioral remedies.
A trial in the antitrust case is scheduled for March 2027, and Paramount has requested a $1.88 billion bond from the plaintiffs to cover potential losses related to a "ticking fee" payable to Warner Bros. Discovery shareholders.
The $111 billion Warner Bros. Discovery deal is funded partly by Larry Ellison, David Ellison’s father, and sovereign wealth funds from Saudi Arabia, Qatar, and Abu Dhabi, with the FCC recently approving Paramount's request to allow nearly 50% foreign equity ownership if the acquisition closes.

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