California Attorney General Rob Bonta expressed his willingness to reengage with Paramount Pictures in settlement discussions, provided the company can curb what he termed “lying leaks.” His comments come as Paramount faces a significant 12-state antitrust case that has impeded its planned acquisition of Warner Bros. Discovery.
Cancellation of Meeting After Leaks
Bonta had initially accepted an invitation to meet with Paramount on Monday at the company’s request. However, he canceled the meeting late Sunday night after reports surfaced about the anticipated discussions. As of Tuesday morning, Bonta confirmed that “we don’t have anything scheduled.”
Conditions for Future Discussions
Regarding future meetings, Bonta emphasized the need for sincerity and good faith from Paramount. “If they are willing to clean things up, put a lid on their lying leaks, and engage in a way that is sincere and in good faith, we will be… happy to meet,” he stated. “But they need to take care of the problems and the leaks that they have on their team.” These remarks were made following a press conference on fentanyl and gun seizures in Los Angeles.
Paramount’s Response and Structural Remedies
A spokesperson for Paramount has denied that the company was the source of the leaks, stating, “we remain hopeful and stand ready to continue good-faith discussions to resolve the Attorney General’s suit inclusive of structural remedies to move forward with our transaction.” Although Paramount has committed to producing at least 30 films a year for the next three years, Bonta has dismissed such “behavioral” commitments as unenforceable.
Need for Robust Structural Remedies
Bonta has consistently insisted that any agreement must include “robust structural remedies” across the three areas of concern raised by the states: basic cable distribution, wide-release theatrical distribution, and blockbuster film distribution. He criticized Paramount for mischaracterizing the nature of their discussions, underscoring the importance of confidentiality in settlement talks. “That is amateur hour,” he remarked. “You want to have an adult, legitimate, serious settlement discussion? No problem. You want to play games? We got better things to do.”
Implications of Prolonged Negotiations
The states currently have an agreement in place blocking the merger until at least the trial next spring, during which Paramount is expected to accrue approximately $1.3 billion in “ticking fees” owed to Warner Bros. Discovery shareholders. Bonta referred to the urgency from Paramount’s side, saying, “Some people use the word ‘desperate,’ but they really, really, really wanted to have these meetings. And then they messed it all up by the way they conducted themselves.”
Political Pressure and Future Considerations
Bonta is under pressure from various industry stakeholders and political leaders in California to reach a settlement. When asked about the likelihood of the case proceeding to trial, he replied, “You should ask Paramount.” He further added, “We could be done tomorrow if they were willing to provide the robust structural remedies. If they’re going to drag their feet and keep talking about 30 films and never talk about anything else, then we’re going to trial.”
