Paramount denies leaking settlement discussions with California AG
August 25, 2026 10.58 Europe/London By Robert Briel

Paramount is pushing back against accusations from California attorney general Rob Bonta, who abruptly canceled a planned meeting on Monday after claiming the company had leaked confidential details about settlement talks over the proposed $111 billion Paramount–Warner Bros. Discovery merger.

In a statement sent to Variety, Paramount said it “has not been the source of the leaks of any of our confidential discussions with the AG’s office”, adding that it shares Bonta’s concerns about “public discussions and misreporting” surrounding the deal. The company said it remains ready to resume good‑faith negotiations aimed at resolving the multistate antitrust lawsuit blocking the merger.

Bonta, however, accused Paramount of both leaking and misrepresenting the substance of settlement discussions, saying the company had shown “a lack of good faith.” His comments followed a Wall Street Journal report claiming the attorney general was expected to demand divestitures of certain cable channels and a commitment to keep Paramount’s movie studio separate from Warner Bros. as conditions for dropping the suit.

The canceled meeting had been scheduled for August 24, part of ongoing efforts to explore a potential settlement. Bonta has said he is open to negotiations but maintains that Paramount has not yet offered the kind of structural remedies needed to satisfy the states’ concerns.

Twelve states, led by California, sued in July to block the merger, arguing it would illegally reduce competition in theatrical distribution, blockbuster films and basic cable. Paramount has agreed to pause the merger until after the trial, set for March 2, 2027, but is eager to resolve the case quickly. Beginning October 1, the company faces a $7 million daily ticking fee payable to Warner Bros. Discovery shareholders until the merger closes.

Internally, David Ellison has warned that Paramount will begin relocating operations out of California if the merger is not completed by September 30, with Tennessee, Texas and Georgia under consideration.

Political leaders including California governor Gavin Newsom and Los Angeles mayor Karen Bass have urged both sides to return to the negotiating table. The merger has divided Hollywood: major theater chains AMC, Regal and Cinemark, along with the Directors Guild of America and IATSE, support a settlement. The Writers Guild of America opposes the deal and has filed its own antitrust lawsuit, arguing the merger would reduce job opportunities and wages for writers.