Paramount is reportedly in advanced talks with California's AG Rob Bonta to resolve an antitrust suit affecting its Warner Bros. Discovery takeover.
David Ellison's Paramount Skydance is reportedly in advanced negotiations with California Attorney General Rob Bonta to reach a settlement regarding a 12-state antitrust suit that is currently obstructing its acquisition of Warner Bros. Discovery. This development was reported by the Wall Street Journal on September 18, 2026, citing anonymous sources familiar with the situation.
The antitrust suit, initiated in multiple states, aims to challenge the implications of the proposed merger, specifically focusing on how the consolidation may impact competition in the media sector. A spokesperson for Paramount declined to comment on the ongoing discussions, while a representative from Bonta’s office indicated that potential talks are confidential and could neither confirm nor deny their specifics.
According to the Wall Street Journal, the two parties have considered potential compromises that include allowing Paramount to operate Warner Bros.' studios separately for a set period. However, it is critical to note that Attorney General Bonta has expressed a preference for a structural remedy rather than behavioral changes—suggesting he seeks a more significant separation of ownership rather than just operational independence under common ownership.
This situation is compounded by a scheduled trial set for March 2027, where the antitrust matter will be further examined in court. Paramount's request for the states involved, including the Writers Guild of America—a party to another antitrust lawsuit against the merger—to post a $1.88 billion bond underscores the high stakes involved. This bond aims to cover potential financial losses arising from a “ticking fee” payable to Warner Bros. Discovery shareholders, which will start accruing on October 1 at a rate of $7 million per day if the case goes to trial.
The proposed $111 billion acquisition of Warner Bros. Discovery by Paramount is notably backed by substantial financial support from Larry Ellison, David Ellison’s father, along with sovereign wealth funds from Saudi Arabia, Qatar, and Abu Dhabi. Concurrently, the Federal Communications Commission (FCC) has approved a petition allowing a significant foreign ownership stake in Paramount should the transaction proceed. Reports suggest that David Ellison has internally discussed relocating Paramount’s operations, including its studio functions, possibly to states like Tennessee, Texas, or Georgia, indicating the level of urgency and potential frustration with the ongoing legal disputes.
The reported advancement in settlement talks between Paramount and California AG Rob Bonta signifies a pivotal moment for the proposed acquisition of Warner Bros. Discovery. If a resolution can be reached, it may facilitate the merger and potentially alter the competitive landscape of the entertainment industry. However, details of how the talks will unfold remain uncertain, with no guarantees of a favorable outcome as the trial approaches. The implications for stakeholders and the broader media environment could be significant, depending on both the terms of any settlement reached and the eventual ruling of the court.
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