Paramount nears merger settlement, but some key state AGs are not on board yet

By Brian Stelter, CNN

(CNN) — Paramount is in advanced talks with state attorneys general to resolve the antitrust lawsuit blocking its acquisition of Warner Bros. Discovery, CNN’s parent company.

But the talks are creating divisions among some of the Democratic states that brought the lawsuit two months ago, sources tell CNN.

California Attorney General Rob Bonta, who has been leading the 12-state coalition, has been pressing to strike a settlement deal with Paramount in recent days.

However, some of the states are not yet on board. New York Attorney General Letitia James has been resisting the deal terms and seeking additional protections for workers, according to a person familiar with the matter.

Connecticut and at least two other states also have reservations about the settlement and are not currently on board. The holdouts are seeking additional remedies from Paramount.

The Connecticut attorney general William Tong is “fighting to preserve the independence of CNN and CBS News,” another person familiar with the negotiations said.

The people spoke on condition of anonymity because the negotiations are confidential and subject to change.

If a settlement deal is not reached, the antitrust case will go to trial in California next March — an extended delay that could potentially jeopardize the deal altogether.

Political calculations loom large: James, Bonta, Tong and some of the other state AGs are up for reelection this November.

James, for one, represents thousands of New Yorkers who work at Paramount and Warner.

The person familiar with the matter said James’ office has been in touch with at least half a dozen impacted unions during the settlement talks.

Bonta has been under intense pressure, including from some usual allies, over Paramount’s reported threats to leave California. L.A. mayor Karen Bass — who is locked in a tough reelection campaign — spoke out last week and said “I’m going to fight like hell” to keep film and TV production in the city.

The Wall Street Journal first reported the advanced settlement talks, and Status first reported on New York and Connecticut’s reservations. In response, Bonta’s office said it would not “confirm or deny whether settlement talks are occurring or their alleged substance.”

Potential concessions from Paramount could include independent content monitoring of CNN and commitments on theatrical releases, Reuters reported, along with keeping the two film studios’ operations separate for a period of time, according to the Journal.

Reports of a looming settlement have raised concern among opponents of the merger, which would create a new Hollywood colossus, uniting Paramount and Warner’s movie studios; dozens of television channels; and the CBS News and CNN news operations.

Some opponents have questioned the motives of Paramount CEO David Ellison and his billionaire father Larry Ellison, the Oracle executive chairman. Larry is a longtime ally of President Trump and David has cultivated close ties to the Trump White House while trying to turn his relatively small production company into a global media giant.

Trump’s Justice Department reviewed the merger and allowed it to proceed without any concessions in June.

“We, respectfully, didn’t think the United States DOJ did an adequate review and we thought we needed to step into that breach,” Bonta said Thursday at The Atlantic Festival.

Bonta said he would insist on “structural remedies,” such as divestitures of cable channels, in any settlement negotiations.

News reports about the current talks led some merger opponents to accuse him of caving to Paramount.

The Block the Merger Coalition, an alliance of Hollywood unions and advocacy groups, announced protests Sunday in L.A. outside Bonta’s office; Monday in New York outside James’ office; and Tuesday in L.A. at the Writers Guild of America West’s headquarters.

Calling the rumored deal “an insult to everyone who has stood up against this harmful transaction,” the coalition urged the attorneys general to block the merger outright.

“An agreement based only on unenforceable concessions is a win only for David Ellison,” the coalition said. “It is an L for everyone else.”

The-CNN-Wire
™ & © 2026 Cable News Network, Inc., a Warner Bros. Discovery Company. All rights reserved.