Paramount advances settlement talks with 12 states over $111 billion Warner Bros. Discovery deal

  • Paramount and 12 states are negotiating a settlement over Warner Bros. Discovery's proposed acquisition.
  • Paramount will seek a $1.88 billion bond from the states and Writers Guild of America.
  • David Ellison wants the merger completed by Oct. 1 before higher shareholder payments become due.

Paramount and California Attorney General Rob Bonta have made progress toward settling the 12-state antitrust lawsuit over Paramount's proposed $111 billion acquisition of Warner Bros. Discovery, but New York Attorney General Letitia James and at least two other states remain opposed to the current compromises. A proposed settlement could include a bipartisan editorial board overseeing CNN, commitments on theatrical releases, temporary separation of the companies' film-studio operations and a requirement that Paramount maintain California operations for a set period. It remains unclear whether Warner assets would have to be sold, a structural remedy Bonta has repeatedly demanded. Paramount will ask U.S. District Judge Araceli Martínez-Olguín on Thursday to require the states and the Writers Guild of America to post a $1.88 billion bond covering potential delay-related costs. David Ellison wants the transaction completed by Oct. 1, when a higher payment to Warner Bros. Discovery shareholders becomes due. If negotiations fail, the case is scheduled for trial next March, while Paramount has threatened to move its Hollywood base to Tennessee or Texas.

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