A meeting discussing a settlement between Paramount and states suing the company was canceled when the company was accused by a state official of “playing games.”
California Attorney General Rob Bonta canceled a meeting scheduled Monday with Paramount Skydance executives. The meeting was the first in scheduled talks to settle a federal lawsuit between 12 states seeking to block the $111 billion merger of Paramount and Warner Bros. Discovery.
Bonta accused the company of “acting in bad faith” and leaking information on Sunday..
“Not only did Paramount leak the alleged substance of settlement discussions, (it) misrepresented these discussions demonstrating a lack of good faith,” Bonta told the New York Times.
Bonta said his office would reschedule the meeting, “As soon as Paramount stops playing games.”
In a statement to the New York Times, Paramount denied the allegations and said it was hoping to resolve multiple leaks to media outlets.
“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,” Paramount said.
The states sued to block the merger in July, citing anti-trust concerns among other considerations such as job losses. The European Union approved of the merger after Paramount agreed to modify its agreement with Universal Pictures on distributing its films in Europe.
Earlier this month, Paramount CEO David Ellison threatened to pull Paramount’s headquarters out of California in the coming weeks if the suit isn’t dropped. He’s also threatened to sue the states to pay penalties the company will suffer if the merger isn’t completed by Oct. 1. Paramount is due to pay over $1 billion in penalties before the merger trial’s scheduled date in March.
The trial gives a very short window for Paramount to complete its deal, which expires in June 2027.
