Paramount and California in Advanced Settlement Talks to End Antitrust Suit

Paramount, led by David Ellison, is engaged in advanced discussions with California Attorney General Rob Bonta regarding a potential settlement of the antitrust lawsuit filed by 12 states. The litigation has been a significant obstacle to Paramount’s proposed acquisition of Warner Bros. Discovery, according to a report published by the Wall Street Journal on Friday.

Negotiations are said to include proposals where Paramount would agree to operate the studios of both companies as separate entities for a designated period rather than merging them immediately. However, the path to agreement faces hurdles; Bonta has previously indicated that a temporary separation of studio operations would not satisfy the requirements to drop the antitrust case.

Representatives for Paramount declined to comment on the report. A spokesperson for the Attorney General’s office stated that potential settlement negotiations are confidential and could not confirm or deny the substance or existence of the talks.

The legal proceedings are scheduled to move forward if no deal is reached, with a trial currently set for March 2027. In recent motions, Paramount requested that the 12 state defendants and the Writers Guild of America post a $1.88 billion bond. This financial guarantee is intended to cover potential losses from a “ticking fee” owed to Warner Bros. Discovery shareholders—a provision that becomes active if the deal does not close by October 1—should Paramount ultimately prevail in court. A hearing regarding this bond motion is scheduled for September 24.

The broader $111 billion transaction is being financed in part by Ellison’s father, Larry Ellison, alongside sovereign wealth funds from Saudi Arabia, Qatar, and Abu Dhabi. Additionally, the Federal Communications Commission recently approved Paramount’s petition to permit 49.5% foreign ownership of its equity upon the completion of the Warner Bros. Discovery deal.