The trial between a dozen state Attorneys General and Paramount over its attempt to acquire Warner Bros. Discovery doesn’t begin until March 2, 2027, but the parties will meet next week to discuss a settlement. After approval from the Trump administration and numerous other countries, a dozen Attorneys General sued Paramount in July in attempt to stop its acquisition of Warner Bros. Discovery for $110.8 billion. Antitrust concerns were raised by the deal which would shrink film and television distributors, have paramount control another major news source in CNN, among other issues.

Representatives from Paramount and the offices of the Attorneys General will meet on Monday to discuss the case. The meeting though is mandated under the mediation procedure, so don’t read too much into it. It’s a common step and has been mandated by Judge Araceli Martinez-Olguin.

California Attorney General Rob Bonta said about the meeting:

As I’ve said before, generally for all of my cases, I prefer to resolve disputes in the boardroom, not the courtroom. As I’ve also said, if the opposing party in litigation wants to meet in good faith to make a sincere effort to resolve the case, we’ll meet. And as I have further said, any potential discussions about the Paramount-Warner Brothers merger will be unproductive absent robust structural remedies on the table that address our concerns.

As it stands today, the proposed Warner Bros./Paramount merger will mean higher costs, less competition, lower wages, job cuts, and fewer movies and TV shows. This merger violates long-standing federal antitrust law, and we are committed to enforcing the law.

Paramount has stated they’re willing to work towards and negotiate a solution without a trial and there has been calls from other parties, some unions and theater chains, for the parties to negotiate a settlement.

Paramount has also threatened to leave California over the lawsuit, a move Bonta sees as an attempt to put pressure on the AGs and get them to settle.

Paramount needs the settlement more than the AGs. If the deal isn’t closed by September 30, a ticking fee begins at about $7 million a day, increasing the cost of the deal. The trial has been set for March 2, 2027 and will last 17 days. The delay through the trial, about 169 days, will cost the company $1.15 billion. Paramount is currently seeking a bond of $1.88 billion from the AGs as well as the Writers Guild of America who is also suing. A decision on that won’t happen until late September

Current California Governor Gavin Newsom has said he is taking Paramount’s threat to leave the state “seriously” and hopes it doesn’t happen.

And I’m of the belief they don’t want that to happen. It’s not, I don’t think, in the company’s long-term interest, but I take it seriously.

I’m concerned about the state, our reputation.

Newsom has also teased there are discussions between parties already happening regarding the antitrust lawsuit. Newsom isn’t running again for Governor due to term limits, and his time in the position will end in January 2027, months before the trial is set to begin.

Newsom is teasing a running for President in 2028. When he does, he’ll need/look for the support of Ari Emanuel, the CEO of WME Group and CEO and executive chairman of TKO Holdings, for that run. Emanuel has become a kingmaker in politics wielding a lot of influence in both parties, though it is rumored Ari’s brother Rahm is also thinking of running for President. Importantly for this, Emanuel is an ally of Paramount CEO David Ellison and has penned an op-ed in support of the deal. Those opposed to the deal would likely have a more difficult time getting his support for their political ambitions.