California AG Sets Terms for Paramount Merger Talks

California Attorney General Rob Bonta is willing to re-engage in settlement discussions regarding the Paramount-Warner Bros. Discovery merger. However, he insists that Paramount must first cease alleged "misrepresenting leaks" to the press regarding confidential negotiation details.

Bonta stated that Paramount has "played games" and "disclosed confidential information" inappropriately, hindering productive settlement talks. He believes that other states' attorneys general manage to conduct such discussions appropriately, and Paramount must adhere to these common practices.

Paramount has denied leaking information and expressed hope for continued "good faith discussions." Bonta countered that the responsibility for resuming talks lies with Paramount, who must address internal leaks before productive negotiations can proceed.

The merger faces a trial in March 2027. If the deal does not close due to regulatory matters, Paramount is liable for a $7 billion break-up fee. Additionally, a 25-cent per share ticking fee, amounting to approximately $7 million daily, begins accumulating for David Ellison's company on October 1, 2026.

Bonta previously advocated for structural remedies, such as divesting a "significant portion" of the combined company's 50 basic cable channels, rather than behavioral pledges. Specific proposals for these divestments remain confidential pending productive settlement discussions.