Paramount and States Open Talks Over $111 Billion Warner Bros Discovery Deal

Paramount and a group of state attorneys general have started early talks over Paramount's $111 billion bid for Warner Bros Discovery, with a court-ordered meeting now on the calendar.

The talks so far are about process, not a final deal. Teams for Paramount chief David Ellison and California Attorney General Rob Bonta are laying out the agenda for a two-day settlement conference on 14-15 October in a San Francisco courtroom, according to Deadline. A settlement conference is a judge-led meeting where both sides try to resolve a court case before trial.

The Wall Street Journal first described the contacts as "advanced talks" with Bonta. Investors reacted quickly. Paramount shares, down 23% so far in 2026, jumped 5% in after-hours trading after the report. Warner Bros Discovery shares rose 6%.

Twelve state attorneys general sued to block the merger on 13 July. That case is an antitrust action, meaning the states argue the deal would harm competition. It is set for trial on 2 March 2027.

Competition over cable channels sits at the centre of the complaint. The combined group would hold more than 50 cable networks. One idea raised in the discussions is for Paramount to run the Paramount and Warner Bros. film and TV studios separately for a period after closing.

Bonta has said a behavioural promise will not be enough. Agreeing to release at least 30 films a year, a type of behavioural remedy that leaves the company intact but sets rules for how it behaves, will not satisfy the plaintiff states, he has said.

The clock is running. A $7 million-per-day ticking fee, meaning a daily payment to Warner Bros Discovery shareholders if the deal has not closed, starts on 1 October.

Paramount declined to comment on whether negotiations were occurring and their status. The California Attorney General's office said only: "Potential settlement talks are confidential."

For viewers, this means waiting a little longer to know who will own what. The channels, streaming services and film studios involved stay under separate ownership for now.

That wait follows a long regulatory road. The US Department of Justice under Donald Trump and other major jurisdictions approved the merger with no conditions. Paramount Skydance has said it satisfied all regulatory conditions under the merger agreement and secured clearances in nearly 70 countries worldwide, according to a company statement. Under a stipulation announced by the New York Attorney General, Paramount and Warner Bros. will continue to remain separate companies while the states' case proceeds.

The stakes for production work are high. L.A. County has projected economic losses starting at $10.6 billion if Paramount exits California amid the lawsuit, according to Deadline.