Settlement talks between Paramount and a coalition of 12 state attorneys general, led by California’s Rob Bonta, have stalled as four AGs—Minnesota’s Keith Ellison, New York’s Letitia James, Connecticut’s William Tong, and Washington’s Nick Brown—push for stricter terms. They argue current proposals, including potential CNN oversight and cable channel sales, are insufficient to address antitrust concerns, according to Deadline.
Proposed settlement terms include separating Warner Bros. studio operations, enforcing a 30-film-per-year theatrical release guarantee with penalties, and requiring Paramount to invest $1.5 billion in California production. However, New York and Connecticut AGs seek additional job protections and stronger safeguards for CNN’s independence, as reported by Variety and The Hollywood Reporter.
The talks paused over Yom Kippur, with a March 2, 2027 trial date looming and a $7 million daily fee for WBD shareholders approaching. Critics, including former FTC chair Lina Khan, warn against "behavioral remedies" like film guarantees, calling the merger "facially illegal" and urging continued litigation. Meanwhile, Hollywood figures and unions pressure AGs to reject deals that could allow Paramount to relocate from California.