California Attorney General Rob Bonta expressed strong confidence on Thursday regarding his legal challenge against Paramount Skydance’s merger with Warner Bros. Discovery. He claimed he has been making significant progress in the legal battle, but also stated he is “open” to discussing a settlement if Paramount approaches with genuine intent.
During an appearance at the Atlantic Festival in Manhattan, Bonta boasted about the strength of the lawsuit aimed at blocking the $81 billion deal, despite mounting pressure from influential Democrats in California who are advocating for a settlement.
When asked about the possibility of negotiation, especially considering that CEO David Ellison has hinted at relocating the company and potentially taking thousands of jobs out of the state if Bonta continues the case, his tone shifted slightly to one of openness.
“We are always open to coming to the table if it is in good faith and it is sincere,” Bonta said. He emphasized the importance of finding results based on their evaluation of the situation.
Recently, the Attorney General, Paramount, and the Writers Guild of America announced that they would engage in two days of discussions next month to seek a resolution. It’s worth noting that last month, Bonta had abruptly canceled a planned meeting with Paramount, accusing the studio of leaking false information before the meeting.
Bonta reiterated his rejection of Paramount’s demand for California and 11 other states involved in the lawsuit to post a $1.88 billion bond to cover potential delays in the merger’s completion.
“In our view, they don’t have any right to that. It seems like buyer’s remorse,” he remarked dismissively.
He accused Paramount of attempting to manipulate the situation by trying to alter an agreement that would see the trial start in June, asserting that the bond request was merely a tactic to create leverage in the case.
As recently as the past few weeks, prominent California Democrats, including Governor Gavin Newsom and Los Angeles Mayor Karen Bass, have publicly urged Bonta to negotiate with Paramount, emphasizing the need to retain tens of thousands of jobs linked to the company within the state.
Bonta, however, maintained his stance amidst the increasing pressure from his party members. “We sued and we’ve been winning in the case so far,” he stated confidently.
He also addressed the threats from Paramount about leaving California, saying, “I can’t comment on what a company decides to do, especially one that claims a commitment to Hollywood and California.” He concluded, “If they choose to leave, that’s their decision, and they will have to own it. Our responsibility is to uphold the law without bias or favoritism.”
According to TMZ, Paramount almost announced its departure from Los Angeles on Tuesday but ultimately decided against it, intensifying concerns among city and state officials about the potential loss of production and entertainment jobs.
Contacted for comment, Bass’ office did not clarify her involvement in the negotiations but mentioned that she is “dedicated to defending and advocating for jobs in Los Angeles, particularly in the entertainment sector, which is crucial to the city’s economy.”
