Representatives from Paramount will meet with California Attorney General Rob Bonta’s office on Monday to discuss a potential settlement of the latter’s antitrust suit seeking to block the David Ellison-led media giant’s $110 billion merger with Warner Bros. Discovery, an individual familiar with the matter told TheWrap.
The discussions come as Bonta and 11 other state AGs and the Writers’ Guild of America are gearing up for a March trial against Paramount. Starting Oct. 1, Ellison is also on the hook to start paying a 25 cent per share ticking fee, which would translate to a payout of $650 million per quarter or $7 million per day until the deal closes.
During a court hearing earlier this week, Judge Araceli Martinez-Olguin asked the parties to identify two potential magistrates who could oversee mediation by next Wednesday. It’s unclear whether the talks will actually lead to a settlement.
Representatives for Paramount declined to comment. A spokesperson for Bonta’s office did not immediately return TheWrap’s request for comment.
While Ellison and Paramount Chief Legal Officer Makan Delrahim have publicly called for a settlement, the CEO has also threatened to move the Hollywood studio’s operations out of California if Bonta does not come to the negotiating table by the Oct. 1 ticking fee deadline.
Bonta has called the threat of a move “blackmail,” but has said he’s open to settlement talks. However, he has urged Paramount to offer structural remedies, such as divestments, rather than behavioral remedies, such as Ellison’s pledge for 30 theatrical film releases per year.
In addition to Paramount, those who have called for a settlement include California Gov. Gavin Newsom, Los Angeles Mayor Karen Bass, the Democratic nominee in California’s gubernatorial race Xavier Becerra, the Directors’ Guild of America and IATSE.
Cinemark, the CEOs of AMC Theaters and Regal, Lionsgate CEO Jon Feltheimer and WME Group executive chairman and Ellison’s business partner Ari Emanuel have all come out in support of the merger. Trade organization Cinema United, which previously opposed the merger, has also called for a settlement.
During a press conference on Friday, Newsom said there was “some universal sentiment” for an out of court settlement.
“The question is, is that possible? And what’s the best deal?,” he continued. “That has to be worked through and that’s a process that’s unfolding, I assure you, in real time. I know there’s there are many meetings that are going on, and there’s a lot of conversation about what that could look like.”
But not everyone wants the deal to go through. Over 5,000 actors, including prominent names like Jane Fonda and Mark Ruffalo, penned a letter opposing the merger. Others who have spoken out against the merger include SAG-AFTRA, the Hollywood Teamsters union and Bass’ mayoral opponent and councilmember Nithya Raman.
Paramount has agreed to delay the closing of the merger until five days after the outcome of the trial, or June 1, 2027, whichever comes earliest. Per the terms of the merger, the final deadline to close the deal is June 4, 2027. In addition to state AGs and the WGA, a Paramount shareholder and group of consumers filed lawsuits to block the merger, though the latter was dismissed by the judge.
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