Twelve states, led by California Attorney General Rob Bonta, sued in July to block Paramount’s roughly $110-billion takeover of Warner Bros. Discovery.
- Exact dates for the settlement talks have not been set, according to a Bloomberg report.
- The meeting is meant as an introduction and will be overseen by U.S. Magistrate Judge Thomas Hixson.
- If the deal is not closed by around October 1, Paramount must start paying Warner Bros. shareholders a “ticking fee” of about $7 million a day.
Paramount Skydance (PSKY) and California’s attorney general were reportedly ordered by the court to set two consecutive days in late October for in-person talks aimed at settling the state’s lawsuit over the studio’s bid for Warner Bros. Discovery.
Exact dates for the settlement talks have not been set, according to a Bloomberg report. The meeting is meant as an introduction and will be overseen by U.S. Magistrate Judge Thomas Hixson. It does not guarantee a deal. The Writers Guild of America West, which has filed a separate challenge, is expected to take part.
Why The Case Is Still Open
Twelve states, led by California Attorney General Rob Bonta, sued in July to block the roughly $110-billion takeover. They argue the combined company would squeeze competition in wide theatrical releases, big-budget films, and basic-cable licensing. The federal government and regulators in 68 countries have already cleared the deal. A court order bars closing until five days after a merits ruling, or June 1, 2027. Trial is set for March 2-19, 2027, in the Northern District of California.
What Each Side Wants
Bonta has said that he wants structural fixes, such as selling assets. Paramount has offered behavioral promises, including at least 30 theatrical releases a year with 45-day windows. Last month Bonta canceled a planned meeting, accusing the company of leaking and misstating earlier talks. Paramount denied being the source and said it was ready to keep talking.
The Clock Is Expensive
If the deal is not closed by about Oct. 1, Paramount must start paying Warner Bros. shareholders a “ticking fee” of about $7 million a day. That cost could run well over $1 billion if the fight lasts until the March trial.
In August, CEO David Ellison reportedly told executives he would begin moving Paramount out of California if talks did not start. Bonta called the threat an attempt to force an illegal deal through.
How Did PSKY, WBD Retail Traders React?
On Stocktwits, retail sentiment around PSKY and WBD stayed ‘extremely bearish’ over the past 24 hours.
While PSKY stock has fallen 21% year-to-date, WBD shares have lost 3%.
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