Paramount Says It Did Not Leak Discussions With California’s Attorney General to the Press
David Ellison’s Paramount Skydance released a statement Monday after California attorney general Rob Bonta abruptly canceled the two sides’ planned meeting, alleging Paramount had leaked confidential discussions about the Warner Bros. Discovery case.
“We share AG Bonta’s concerns about the public discussions and misreporting that has surrounded this deal,” Paramount said in a statement sent to Variety. “As we have assured the Attorney General’s office, Paramount has not been the source of the leaks of any of our confidential discussions with the AG’s office. 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.”
Earlier Monday, Bonta had said in a statement: “Not only did Paramount leak the alleged substance of settlement discussions, but they misrepresented these discussions, demonstrating a lack of good faith. As soon as Paramount stops playing games and engages sincerely, my office is happy to meet again.”
Bonta’s calling off the Monday meeting came after a Wall Street Journal report Sunday cited anonymous sources as saying that the California AG was “expected to ask Paramount to divest some cable channels and commit to keeping its movie studio separate from Warner Bros.” as a condition for dropping the 12-state antitrust lawsuit seeking to stop the Paramount-Warner Bros. merger.
Variety reported Friday that Paramount reps and Bonta’s team were scheduled to meet on Aug. 24 to discuss a potential settlement of the states’ antitrust case.
Bonta has said he is open to settlement negotiations, but he’s also said that Paramount has thus far been unwilling to offer the kind of structural remedies that would satisfy the states’ concerns.
The 12 states, led by Bonta, sued in federal court in July to block Paramount’s takeover of Warner Bros. Discovery. The states have alleged the proposed merger will illegally reduce competition in the markets for theatrical and blockbuster films, as well as basic cable TV. Paramount agreed to pause the WBD merger until after the case goes to trial, which is scheduled for March 2, 2027. But Paramount wants to resolve the legal matter as soon as possible, including because as of Oct. 1 it will start incurring a $7 million daily “ticking fee” payable to Warner Bros. Discovery shareholders until the merger closes.
Internally, Ellison has said Paramount will start the process of moving out of the state of California if the Warner Bros. merger is not closed by Sept. 30. States he’s considering for Paramount’s new base of operations include Tennessee, Texas and Georgia.
Last week, California Gov. Gavin Newsom and Los Angeles Mayer Karen Bass called on Paramount and the state AGs to come to the negotiating table to resolve the standoff.
Paramount’s pending $111 billion takeover of Warner Bros. Discovery has divided the industry, but most stakeholders are eager to see a quick resolution. The three biggest U.S. theater chains — AMC Theatres, Regal Cinemas and Cinemark — are backing the Paramount-Warner Bros. merger. The Directors Guild of America and IATSE also have urged Bonta to settle the antitrust lawsuit, arguing that prolonged uncertainty over the merger is detrimental to the industry.
The Writers Guild of America, however, has filed its own antitrust lawsuit seeking to block Paramount-WBD, alleging it would reduce writers’ job opportunities and wages. The WGA is part of the “BlockTheMerger” coalition of groups that organized an open letter signed by more than 5,600 actors, filmmakers and other Hollywood workers opposing the deal.
“We share AG Bonta’s concerns about the public discussions and misreporting that has surrounded this deal,” Paramount said in a statement sent to Variety. “As we have assured the Attorney General’s office, Paramount has not been the source of the leaks of any of our confidential discussions with the AG’s office. 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.”
Earlier Monday, Bonta had said in a statement: “Not only did Paramount leak the alleged substance of settlement discussions, but they misrepresented these discussions, demonstrating a lack of good faith. As soon as Paramount stops playing games and engages sincerely, my office is happy to meet again.”
Bonta’s calling off the Monday meeting came after a Wall Street Journal report Sunday cited anonymous sources as saying that the California AG was “expected to ask Paramount to divest some cable channels and commit to keeping its movie studio separate from Warner Bros.” as a condition for dropping the 12-state antitrust lawsuit seeking to stop the Paramount-Warner Bros. merger.
Variety reported Friday that Paramount reps and Bonta’s team were scheduled to meet on Aug. 24 to discuss a potential settlement of the states’ antitrust case.
Bonta has said he is open to settlement negotiations, but he’s also said that Paramount has thus far been unwilling to offer the kind of structural remedies that would satisfy the states’ concerns.
The 12 states, led by Bonta, sued in federal court in July to block Paramount’s takeover of Warner Bros. Discovery. The states have alleged the proposed merger will illegally reduce competition in the markets for theatrical and blockbuster films, as well as basic cable TV. Paramount agreed to pause the WBD merger until after the case goes to trial, which is scheduled for March 2, 2027. But Paramount wants to resolve the legal matter as soon as possible, including because as of Oct. 1 it will start incurring a $7 million daily “ticking fee” payable to Warner Bros. Discovery shareholders until the merger closes.
Internally, Ellison has said Paramount will start the process of moving out of the state of California if the Warner Bros. merger is not closed by Sept. 30. States he’s considering for Paramount’s new base of operations include Tennessee, Texas and Georgia.
Last week, California Gov. Gavin Newsom and Los Angeles Mayer Karen Bass called on Paramount and the state AGs to come to the negotiating table to resolve the standoff.
Paramount’s pending $111 billion takeover of Warner Bros. Discovery has divided the industry, but most stakeholders are eager to see a quick resolution. The three biggest U.S. theater chains — AMC Theatres, Regal Cinemas and Cinemark — are backing the Paramount-Warner Bros. merger. The Directors Guild of America and IATSE also have urged Bonta to settle the antitrust lawsuit, arguing that prolonged uncertainty over the merger is detrimental to the industry.
The Writers Guild of America, however, has filed its own antitrust lawsuit seeking to block Paramount-WBD, alleging it would reduce writers’ job opportunities and wages. The WGA is part of the “BlockTheMerger” coalition of groups that organized an open letter signed by more than 5,600 actors, filmmakers and other Hollywood workers opposing the deal.