California's AG Just Canceled Settlement Talks With Paramount Over the $110 Billion Warner Bros. Discovery Deal

California Attorney General Rob Bonta canceled a settlement meeting that had been scheduled for Monday, August 24, with Paramount Skydance over its proposed $110 billion acquisition of Warner Bros. Discovery — the deal that would put HBO Max, Discovery+, CNN and CBS under one corporate roof alongside Paramount+.

"Not only did Paramount leak the alleged substance of settlement discussions, but they misrepresented these discussions, demonstrating a lack of good faith," Bonta said, adding that he would reschedule once Paramount engages "sincerely."

What the lawsuit actually alleges

Bonta leads a coalition of 12 states — California, Arizona, Colorado, Connecticut, Massachusetts, Minnesota, Nevada, New Jersey, New Mexico, New York, Oregon and Washington — suing to block the merger under Section 7 of the Clayton Act, the federal law barring mergers that substantially lessen competition. The suit argues the deal would eliminate competition between two of Hollywood's five major film distributors and two of five major basic-cable channel owners, giving the combined company a 27% share of wide-release theatrical distribution, more than 30% of anticipated top-grossing films, and a 27% share of basic-cable channel licensing. "The unlawful merger of these two entertainment behemoths would lead to higher prices, lower quality, and less content for film and television," Bonta said in the state's original filing.