Paramount and California ordered to settlement talks

Paramount Skydance and representatives for California Attorney General Rob Bonta will meet on 14 and 15 October for court-ordered settlement talks. The negotiations could clear the way for David Ellison's $111 billion takeover of Warner Bros. Discovery, according to court documents filed this week.

Bonta and 11 other Democratic state attorneys general filed a lawsuit in July to block the transaction. The proposed deal would combine HBO, CBS, CNN, TBS, Food Network, Comedy Central, and the Paramount and Warner Bros. studios. A prior settlement session was canceled last month by Bonta after ground rules leaked.

The US Department of Justice intervened on Tuesday in support of Paramount. In a statement of interest, federal officials argued that state plaintiffs sued as private persons who must satisfy higher legal hurdles. The department also asked the judge to order California, the other states, and the Writers Guild of America to post a $1.88 billion bond.

That bond would cover ticking fees Paramount agreed to pay Warner Bros. Discovery shareholders if the merger does not close by 1 October. Bonta's office stated on Wednesday that it opposes posting the bond, with a court hearing scheduled for 24 September.

Makan Delrahim, chief legal officer at Paramount Skydance, is leading the legal effort. The transaction has secured clearances from more than 65 international regulators, while Paramount also expects approval from the Federal Communications Commission for an ownership structure granting Middle Eastern royal families a nearly 50% equity stake.