California Attorney General Rob Bonta cancelled a Monday meeting with Paramount Skydance, citing a “lack of good faith” in early settlement discussions over the company's proposed merger with Warner Bros. Discovery.
“My office had a meeting with Paramount on Friday. Paramount did not maintain the confidentiality of that meeting. Not only did Paramount leak the alleged substance of settlement discussions, but they misrepresented these discussions, demonstrating a lack of good faith,” Bonta reportedly said in a statement.
“As soon as Paramount stops playing games and engages sincerely, my office is happy to meet again,” he said.
Bonta had been scheduled to meet Paramount representatives on Monday but cancelled the meeting. The California attorney general is leading a group of states seeking to block Paramount Skydance's proposed merger with WBD on antitrust grounds.
Paramount said it had “assured” the attorney general's office that it was not responsible for the leaks.
“We remain hopeful and stand ready to continue good faith discussions to resolve the Attorneys General suit and move forward with our plans for increased competition and increased output to the benefit of the talent and entertainment workers,” the company said.
Bonta told CNBC last week that he was prepared to negotiate a settlement, describing the lawsuit as a “black-and-white” antitrust case.
“We do prefer to resolve cases in the boardroom instead of the courtroom, but for now we’re bringing our case, and, you know, I hope they can focus on the actual allegations we make in our complaint,” Bonta told CNBC on Thursday.
However, Bonta said resolving the lawsuit would require “robust structural remedies” from Paramount.
Bonta and 11 other state attorneys general filed a lawsuit in July seeking to block the merger, arguing that the acquisition would create a media giant controlling a significant share of film and basic television programming.
Bonta said last week that his lawsuit was focused on competition rather than streaming, CNN or foreign regulators.
Paramount, which has proposed acquiring WBD for about $110 billion, has agreed to delay completion of the deal until as late as June 2027. The antitrust trial is scheduled to begin in March.
Paramount has previously described the lawsuit as a “misrepresentation of competition” and defended its decision to acquire WBD.
