Paramount antitrust settlement talks have become increasingly divided, with state attorneys general split over whether to approve an agreement that could clear the way for the company’s proposed acquisition of Warner Bros. Discovery.
The case was brought by 12 states, and negotiations are reportedly continuing despite growing disagreement among the Democratic-led states involved. Paramount is seeking a settlement as it attempts to move ahead with the deal.
State attorneys general divided over Paramount settlement
California attorney general Rob Bonta is understood to be pressing for an agreement, despite opposition from figures in the entertainment industry, including actor Mark Ruffalo, who have urged him not to settle the merger case.
New York attorney general Letitia James is reportedly the main holdout. She has resisted the proposed deal while seeking additional guarantees on protections for workers.
Connecticut attorney general William Tong and two other state attorneys general are said to remain undecided, with further concessions being sought before they will support a settlement.
The negotiations have reportedly been strained. At one closed-door meeting, Paramount indicated that talks were over before discussions resumed, while one source described the atmosphere at the meetings as “tense”.
The dispute comes as Paramount chief executive David Ellison threatens to move the company out of California permanently if the legal challenge continues. A failure to settle could also put the proposed Warner Bros. Discovery acquisition at risk.
California officials have faced pressure over the merger, with members of the entertainment industry opposing a settlement. Actor Leonardo DiCaprio, Robert De Niro and Tobey Maguire also met California governor Gavin Newsom on Friday night, although the reason for the meeting was not disclosed.
