David Ellison, who assumed leadership of Paramount Skydance roughly a year ago, has been pursuing the acquisition of Warner Bros. Discovery since the previous September. The proposed transaction carries a valuation of $110 billion and would combine Paramount with WBD’s assets, including its film studio, pay TV networks, and HBO Max streaming service. The deal has received approval from all major global regulators and the U.S. Department of Justice’s Antitrust Division.
However, a coalition of state attorneys general, led by California AG Rob Bonta, has filed suit to block the merger on antitrust grounds. A trial addressing the matter is scheduled for March. Bonta has indicated that his challenge reflects concerns about regulatory oversight that he believes the Trump administration has not adequately addressed. The California AG has stated that any settlement would require “robust structural remedies.” Meanwhile, the involvement of the Ellison family, which has ties to President Trump, has drawn scrutiny given the president’s public statements supporting the combination.
Paramount has pursued multiple strategies to advance the acquisition. The company submitted potential concessions to Bonta’s office by mid-May and has indicated willingness to formally delay closing to proceed to trial. Ellison published a New York Times op-ed outlining his case for the merger. Paramount also negotiated contracts with Hollywood exhibitors guaranteeing a combined studio would release at minimum 30 films annually with 45-day theatrical windows for at least three years. Reports emerged that Paramount considered relocating its headquarters to Tennessee, a suggestion Bonta characterized as “blackmail.”
Efforts to reach a settlement have proven complicated. Meetings between the parties took place at Bonta’s office, but discussions were disrupted when media reports surfaced detailing settlement possibilities, including potential divestment of pay TV networks. Bonta’s office alleged that Paramount leaked details of negotiations and engaged in bad faith discussions. Paramount denied responsibility for the leak. The company has reiterated its commitment to good faith negotiations, while Bonta stated his office remains open to further discussions once Paramount engages sincerely.
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