California Attorney General Rob Bonta canceled a Monday settlement meeting with Paramount, accusing the studio of leaking details of the planned discussions and misrepresenting what had been said.
"Not only did Paramount leak the alleged substance of settlement discussions, but they misrepresented these discussions, demonstrating a lack of good faith," Bonta said in a statement. "As soon as Paramount stops playing games and engages sincerely, my office is happy to meet again."
The meeting had been scheduled to address a potential resolution to Bonta's antitrust suit, which seeks to block the $110 billion merger between Paramount and Warner Bros. Discovery under David Ellison's leadership. Bonta is one of 12 state attorneys general who filed suit against the deal. A trial, set alongside a Writers Guild of America case, is scheduled for March.
The canceled meeting had only been announced Friday, following public pressure from California Gov. Gavin Newsom and Los Angeles Mayor Karen Bass. A wide range of industry figures had voiced support for a settlement, including IATSE, the Directors Guild of America, Cinemark, AMC Theaters, Regal, Cinema United, Lionsgate CEO Jon Feltheimer, and WME Group executive chairman Ari Emanuel.
The financial stakes are rising. Starting October 1, Ellison must begin paying a 25 cent per share ticking fee, which amounts to $650 million per quarter or $7 million per day until the deal closes. Ellison has threatened to move Paramount's Hollywood operations out of California if Bonta does not come to the table before that deadline. Bonta called the ultimatum an act of "blackmail," but said he remained open to settlement discussions.
Last week, Judge Araceli Martínez-Olguín asked both parties to identify two potential magistrates to oversee mediation. That request carried a Wednesday deadline.
