Paramount’s Antitrust Deal Splits 12 States, California vs. New York

**Paramount Faces Split Over Antitrust Settlement as States Take Divergent Stances**

Paramount Pictures is negotiating an antitrust settlement with 12 states that have filed a lawsuit over the studio’s planned acquisition of Warner Bros. Discovery. The negotiations have fractured state officials into two camps: one pushing for a deal and the other insisting on no settlement.

The disagreement has deepened after a new report revealed that no consensus has emerged among the involved states. While many entertainment industry figures, including actor Mark Ruffalo, have urged California Attorney General Rob Bonta not to approve a settlement, Bonta is reportedly working to advance the deal, .

California’s position is further complicated by the involvement of Hollywood veterans. Leonardo DiCaprio, Robert De Niro, and Tobey Maguire met with Governor Gavin Newsom on Friday night. Newsom is a strong advocate for keeping film companies headquartered in Los Angeles.

On the opposing side, New York Attorney General Letitia James has been a major holdout, demanding additional worker protections before she will consider a settlement. CNN reports that James continues to push back on the terms offered by Paramount.

Other state attorneys general appear undecided. Connecticut Attorney General William Tong and two additional AGs have indicated they are open to other concessions but have not yet committed to a deal.

In a closed‑door meeting, Paramount reportedly told officials “we’re done,” only to resume negotiations later that week. A key source described the renewed talks as tense, suggesting that the atmosphere at the bargaining table remains uncertain.

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## Background & Context

The antitrust case was filed by 12 states that argue the merger of Paramount and Warner Bros. Discovery would create an overly dominant entertainment conglomerate. Paramount is seeking to resolve the lawsuit while finalizing its acquisition of Warner Bros.

Discovery, a move that has attracted scrutiny from regulators nationwide. The settlement talks have involved high‑profile figures from both sides of the industry, reflecting the broader debate over concentration of media ownership.

## Current Status & Implications

The settlement negotiations are now at a critical juncture. Paramount CEO David Ellison has threatened to relocate the company out of California if the lawsuit proceeds, a move that could derail the merger entirely.

The potential for a federal lawsuit to move forward raises the stakes for all parties involved, as it could result in significant legal costs and a delay or cancellation of the acquisition.

As negotiations continue, state officials remain divided. The outcome will hinge on whether Paramount can secure agreement on worker protections and other concessions demanded by key holdouts like New York’s Attorney General.

The resolution—or lack thereof—will have lasting implications for the structure of the U.S. entertainment industry.

The settlement talks are progressing under intense pressure, with the fate of Paramount’s merger and its future presence in California hanging in the balance.