California AG Bonta cancels Paramount settlement meeting

California Attorney General Rob Bonta canceled a meeting with Paramount Skydance on Monday, saying the company demonstrated a “lack of good faith” in early settlement talks around its planned 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 said in a statement.

“As soon as Paramount stops playing games and engages sincerely, my office is happy to meet again,” he said.

Bonta was scheduled to meet with Paramount representatives on Monday, he said, but canceled the meeting. The California attorney general is leading a group of states in suing to block Paramount Skydance’s planned merger with WBD.

In a statement, Paramount said it has “assured” the attorney general’s office that it was not the source of 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.

A spokesperson for WBD declined to comment Monday. The New York Times first reported the Monday meeting and subsequent cancellation.

Bonta told CNBC last week he was ready to come to the table and negotiate a settlement, calling the lawsuit 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.

Still, Bonta said a resolution of the lawsuit would require “robust structural remedies” on Paramount’s part.

Bonta and 11 other state AGs filed suit in July to block the merger, alleging that the acquisition would create a media giant that would control a sizable portion of film and basic TV programming. Bonta told CNBC last week that the focus of his lawsuit is not on streaming, CNN or foreign regulators.

Paramount, which is proposing to acquire WBD for roughly $110 billion, agreed to delay the closing of the deal until as late as June 2027. A trial in the antitrust case is scheduled for March.

Paramount has previously called the lawsuit a “misrepresentation of competition” and has stood by its decision to acquire WBD.