Paramount negotiates settlement with California to resolve antitrust lawsuit over Warner Bros takeover

Conflicting reports on negotiation progress

Paramount Skydance and a coalition of 12 state attorneys general led by California Attorney General Rob Bonta have opened discussions to resolve an antitrust lawsuit challenging Paramount's takeover of Warner Bros Discovery. The acquisition is valued between $81 billion and $111 billion across different source filings. Reports from The Wall Street Journal and Reuters described the settlement talks as advanced, indicating that a resolution could emerge within days to clear the final regulatory hurdle. Other sources cited by Deadline characterized the talks as preliminary procedural discussions focused on setting the agenda for court-ordered sessions in October. Paramount Chief Executive David Ellison previously threatened to move the studio out of California if an agreement is not reached by early October. Paramount shares gained between 5% and 6.3% in after-hours trading on Friday following news of the negotiations, after dropping 23% earlier in 2026, while Warner Bros Discovery stock rose 6%.

A representative from the California Attorney General's office responded to inquiries regarding the reported negotiations.

Potential settlement talks are confidential. We cannot confirm or deny whether settlement talks are occurring or their alleged substance.

Concession terms and structural disputes

Negotiators have reviewed several behavioral compromises to alleviate antitrust concerns regarding media concentration. Terms under consideration include independent editorial monitoring for CNN and a commitment by Paramount to distribute at least 30 theatrical films annually with 45-day theatrical exhibition windows. Discussions have also examined operating the film and television studios of Paramount and Warner Bros separately for an interim period rather than combining their physical and creative operations immediately. Bonta has maintained throughout the litigation that behavioral remedies are inadequate, asserting that running studio operations independently cannot serve as the primary foundation for a settlement. State officials have focused on concentration within a combined portfolio of more than 50 cable networks, while federal lawmakers have questioned Ellison over editorial changes at Paramount-owned CBS News in relation to President Donald Trump.

Financial deadlines and legal timeline

Paramount faces strict calendar benchmarks that impose substantial financial penalties if the litigation delays completion. A ticking fee of $7 million per day payable to Warner Bros Discovery shareholders begins accruing on October 1 if the transaction has not closed. Paramount filed a legal motion requesting that the 12 states and the Writers Guild of America post a $1.88 billion bond to cover potential ticking fee costs if Paramount prevails at trial, with a hearing scheduled for September 24. A federal judge ordered Paramount, Warner Bros Discovery, and state attorneys general to attend a two-day settlement conference on October 14 and 15 in San Francisco. On September 17, the Federal Communications Commission approved $24 billion in financing from three Middle East sovereign wealth funds, bringing aggregate foreign equity ownership in the combined company to 49.5%. If negotiations fail to yield a settlement, the federal antitrust trial is scheduled to begin on March 2, 2027.