California Attorney General Rob Bonta has cancelled planned settlement talks with Paramount over the state’s lawsuit seeking to block David Ellison’s proposed $111 billion acquisition of Warner Bros. Discovery, accusing the company of acting in bad faith.
Bonta, who is leading a coalition of 12 states challenging the proposed merger, called off a meeting scheduled for Monday after accusing Paramount of misrepresenting details from an earlier meeting held on Friday.
The states are asking a court to block the deal, arguing that the merger would give Paramount excessive power across cable television and movie production.
The planned meeting had been viewed as a possible step toward resolving the legal dispute. However, Bonta withdrew from the talks late Sunday after accusing Paramount of leaking and misrepresenting the substance of the previous discussions.
“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 sent to The New York Times. “As soon as Paramount stops playing games and engages sincerely, my office is happy to meet again.”
Bonta has maintained that any settlement must include “structural remedies,” which could involve the sale of assets. Paramount may resist such measures as it seeks to complete the acquisition.
The dispute comes as pressure mounts to resolve the antitrust case before the trial scheduled for March.
Paramount has also threatened to leave California amid the dispute. Meanwhile, the company faces a growing financial incentive to complete the transaction. If the deal has not closed by Oct. 1, Paramount will begin accruing a “ticking fee” owed to shareholders of about $7 million per day.
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