In late August, Paramount and State Attorneys General were set to meet to discuss a settlement regarding Paramount’s acquisition of Warner Bros. Discovery. That meeting was canceled due to a “lack of good faith” by Paramount. California Attorney General Rob Bonta accused Paramount of breaking confidentiality and misrepresenting the discussions.
The judge in the case has instructed the parties to sit down for two consecutive days at the end of October. To prevent it from being a waste of time, the parties will submit a schedule to the judge by the end of September 15. The request to meet is pretty standard in cases and doesn’t indicate the parties are close to a settlement or it’s even in progress.
A dozen state attorneys general are suing Paramount to prevent, or get changes, to Paramount’s $111 billion purchase of Warner Bros. Discovery. The states believe that the deal violates antitrust laws and will be negative to consumers and those within the entertainment industry.
The Halloween-ish meeting is one of major dates coming up for the case.
The Supreme Court has asked the attorneys general to respond to a push by two Republican attorneys general to get the Supreme Court to stop the lawsuit. They have to respond that lawsuit by September 25.
A hearing is set regarding a $1.88 billion bond that Paramount is demanding from the states and Writers Guild of America over damage they’ll suffer due to delays of the deal.
At the end of September, a $7 million a day ticking fee for Paramount’s deal begins. That fee is why Paramount is demanding the bond from the parties suing them. The ticking fee will add $635 million a quarter to the deal and currently, the court date for the antitrust case is set for March 2027 which would add about $1.3 billion to the cost of the deal.
