If you’ve spent the weekend chattering about details of a Friday meeting between California attorney general Rob Bonta and Paramount brass regarding the studio’s planned acquisition of Warner Bros. Discovery, well, that’s a problem.
The New York Times reported early Monday morning that Bonta had cancelled another meeting with the studio, set for Monday, after “accusing Paramount of acting in bad faith. … Bonta accused Paramount of leaking details of a meeting the parties held on Friday.”
“Not only did Paramount leak the alleged substance of settlement discussions, but they misrepresented these discussions, demonstrating a lack of good faith,” Bonta’s statement read. “As soon as Paramount stops playing games and engages sincerely, my office is happy to meet again.”
Per the NYT, that now-canceled meeting “was supposed to be preliminary, and there was never any assurance that it would lead to meaningful negotiations toward a settlement. But the possibility that the two sides could begin moving toward an agreement was seen as something of a breakthrough after Paramount threatened to leave California and Gov. Gavin Newsom expressed a preference for settling the case.”
In July, a coalition of 12 states filed an antitrust lawsuit to block the planned merger between Paramount and Warner Bros. Discovery in a $111 billion transaction. The suit was led by Bonta, who wrote that the merger would “extinguish competition between Paramount and Warner Bros. and inflict substantial harm on movie theatres, basic cable distributors, and, ultimately, audiences nationwide.”
A recent report commissioned by Los Angeles County found that Paramount‘s purchase of Warner Bros. Discovery could be devastating for California and the entertainment industry, costing the state 4,500 film and TV production jobs and putting at risk $1.26 billion in wages.
Earlier this month, a judge set a trial date for March to determine the validity of the merger, a blow to Paramount as it lobbied for a date as soon as November and looks to avoid paying a costly ticking fee of $7 million per day starting October 1, totaling upwards of $1 billion by next spring. An appeals process could stretch this out even longer. Paramount has agreed not to close until June unless a trial concludes before then.
In recent weeks, the merger has picked up a slew of allies, including top theater chains AMC and Regal. Why? Deals, people. Paramount recently agreed to put into writing its commitment to theatrical releases under the merger, including the much-vaunted 30 new releases per year promise. The chains appear to see that as a good faith offer. Bonta, however, seems to need more.