Paramount and California to Hold Preliminary Talks on Warner Bros Deal

Paramount and California state officials are set to meet on Monday to discuss a potential settlement path of the state’s lawsuit aimed at stopping Paramount’s acquisition of Warner Bros. Discovery, the New York Times reported on Saturday citing sources familiar with the discussions.

Related: Paramount Seeks $1.9 Billion Bond From States in Merger Lawsuit

Here’s what to know:

• The talks are preliminary, and there is no assurance that they will lead to meaningful negotiations toward a settlement, the report said, adding that Paramount requested the meeting.
• Reuters couldn’t immediately verify the report. Paramount didn’t immediately respond to a request for comment outside regular business hours.
• The meeting, which will include senior executives and lawyers from each side, has been in the works for a little over a week, NYT added, citing one of the people.
• Last month, California and 11 states sued to block Paramount’s $110 billion acquisition of Warner Bros. Discovery, alleging the deal would lessen competition in film distribution and cable television, harming theaters and pay TV distributors.
• States including New York, Arizona and Minnesota argued the deal would harm theaters and television distributors, raise prices for consumers and make wages less competitive for workers.

(Reporting by Mishra in Bengaluru; Editing by Franklin Paul)