paramount

Tensions flared on the eve of a critical week ahead for Paramount Skydance’s proposed $111-billion acquisition of Warner Bros. Discovery, amid new urgency for talks aimed at settling antitrust litigation brought by California Atty. Gen. Rob Bonta and 11 other states.

Over the weekend, opposition intensified to a proposed settlement as details trickled out, including a proposal to establish a bipartisan editorial board to monitor cable news channel CNN, one of Warner’s premier properties that Paramount Chief Executive David Ellison would control along with CBS News.

It wasn’t clear Sunday whether a proposed settlement would require Warner to sell off assets — something Bonta repeatedly has insisted upon. Critics of the deal urged Bonta and other state attorneys general to resist pressure to reach a settlement that would allow Ellison’s deal to move forward.

“State Attorneys General, please hang tough against the giant proposed Paramount-Warner Brothers merger,” Rep. Jamie Raskin (D-Md.) wrote on social media late Saturday.

“Paramount, run by the Ellisons, should not own both CBS and CNN. California must not cave and take a deal that leaves both under the same owner,” Rep. Ro Khanna (D-Fremont) wrote.

Bonta and Ellison have made progress in the talks in recent days, according to four people familiar with the matter not authorized to speak publicly.

However, New York’s Letitia James and at least two other attorneys general who joined Bonta’s lawsuit in July privately have expressed reservations about the proposed compromises, believing they don’t go far enough to mitigate concerns about the power Paramount-Warner Bros. would wield over the film and TV industries should the merger go through, according to the people familiar with the matter.

James isn’t on board with Bonta’s proposed settlement, two of the people said. A potential split within Bonta’s coalition could be a setback because Bonta needs the other state attorneys general who joined his legal effort to sign off on any deal.

A spokesperson for Bonta did not respond Sunday to a request for comment.

Paramount maintains its deal to bring HBO, CNN, CBS, TBS, Comedy Central and two legendary film and television studios together would create a stronger company that could withstand the fierce competition from tech giants such as Apple, Netflix, Google (which owns YouTube) and Amazon. The two studios, on their own, would not be strong enough on their own to remain viable in the streaming age, the company has said.

On Thursday, Paramount lawyers plan to demand that U.S. District Judge Araceli Martínez-Olguín in Oakland require the states and the Writers Guild of America to post a $1.88-billion bond that would cover some of Paramount’s delay-related deal costs should the company eventually prevail.

The states and the WGA, which also sued to block the merger, have balked at the request, which was designed by Paramount to create fissures within the coalition of states, which also include Minnesota, Oregon, Colorado, Connecticut, New Jersey and Massachusetts.

Ellison wants the merger finalized by Oct. 1, when his company will be obligated to make a higher payout to Warner Bros. Discovery shareholders. The company has threatened to move its Hollywood base from its historic Melrose Avenue lot to Tennessee or Texas should the antitrust battle stretch into October.

The prospective loss of an iconic California business — a century-old film studio that helped establish Hollywood — has rattled state and local politicians, who are fearful of losing more jobs at a time when Los Angeles film production levels already are at alarming lows.

Gov. Gavin Newsom, Los Angeles Mayor Karen Bass and Xavier Becerra, the Democratic nominee for California governor, have publicly called on Bonta to settle the suit rather than prepare for a trial next spring. City Councilmember Nithya Raman, Bass’ opponent in the L.A. mayor race, has been one of few California politicians in support of Bonta’s fight.

In an opinion essay Sunday, a trio of 1st Amendment and antitrust experts dismissed Paramount’s threat to leave Los Angeles as a ploy that doesn’t make business sense.

“Ellison’s threat is empty, and the AG should call that out — not give into it,” the experts — Fiona Scott Morton, Gene Kimmelman and Norm Eisen — wrote in the Contrarian.

Both Morton, an economics professor at the Yale School of Management, and Kimmelman formerly served in the U.S. Justice Department during Democratic administrations. Eisen, founder of the group Democracy Defenders Action, is helping lead the Block the Merger campaign.

“Paramount [would be] sinking the cost of moving before it knows what businesses it owns and how best to combine and organize them — which makes expensive strategic mistakes inevitable,” the trio wrote. “A company that raises its own costs while leaving behind the most valuable labor in the industry does not threaten California; it threatens itself.”

The group noted Paramount, in its regulatory filings, still lists its Times Square offices in New York as its corporate headquarters — not its Melrose Avenue campus in Hollywood.

“There is also the possibility that Ellison is planning to move Paramount to Tennessee regardless of how the lawsuit resolves,” the group wrote.

Bonta and Paramount have discussed including in any settlement a condition that Paramount would keep its operations in California for a set period, according to people familiar with the proposal but not authorized to comment.

Merger opponents planned a Sunday evening rally outside Bonta’s offices in Oakland to encourage him to stand tough. The group plans subsequent demonstrations this week outside James’ office in New York City and the Paramount lot in Hollywood.

The jockeying comes as President Trump, who favors the Ellison takeover of CNN and Warner Bros., has sought to block several prominent news organizations, including CNN and Politico, from reporting from the White House.

“Trump just locked CNN out of the White House. Now his billionaire allies want to own it,” Sen. Cory Booker (D-N.J.) added in a Sunday post. “State attorneys general: Don’t settle. Hold the line. Block this merger.”

After a bitter standoff, Paramount Skydance and California Atty. Gen. Rob Bonta have made progress in settlement talks that could push Hollywood’s massive merger over the finish line, people familiar with the matter said Friday.

The two sides have quietly been negotiating a truce to end the antitrust lawsuit brought by Bonta and 11 other Democratic state attorneys general — a legal volley that has threatened to derail Paramount’s $111-billion takeover of Warner Bros. Discovery.

It’s not clear how close to a resolution the two sides are, but talks in recent days have been constructive, one of the knowledgeable sources said.

Paramount Chief Executive David Ellison is highly motivated to end the court battle with Bonta before Oct. 1, when his company will be obligated to make a higher payout — an extra $7 million a day — to Warner Bros. Discovery shareholders on top of the $81 billion the company has already agreed to pay.

For weeks, Ellison and his team have been ratcheting up political heat on Bonta to abandon his lawsuit, including threatening to pull Paramount out of Hollywood — a scenario that has rattled state and local lawmakers who desperately want to bring film jobs back to Los Angeles, not lose thousands more.

Paramount declined to comment.

A spokesperson for Bonta’s office said in a statement: “Potential settlement talks are confidential. We cannot confirm or deny whether settlement talks are occurring or their alleged substance.”

Both sides have incentives to settle. Ellison, who has leaned on his family’s connections to President Trump and Washington Republicans, would like to avoid taking on more debt for the already highly leveraged deal. And he is eager to close the transaction and take the reins at Warner Bros. before the midterm elections.

Bonta has been on a winning streak with favorable rulings against the Trump administration and social media giant Meta, and he doesn’t want to overplay his hand or risk having his coalition of state attorneys fall apart.

Earlier this week, the two sides agreed to sit down for court-mandated settlement talks in mid-October. The two sides were set to meet in late August but Bonta pulled the plug on those sessions, accusing Paramount of leaking misinformation and “playing games.”

The Wall Street Journal first reported the two sides were in advanced talks.

This is a developing story.

Paramount Skydance will meet with California Atty. Gen. Rob Bonta’s representatives next month for court-ordered settlement talks that could clear a path for David Ellison’s $111-billion takeover of Warner Bros. Discovery.

The two sides will convene for two days, Oct. 14 and Oct. 15, according to court documents filed this week.

The talks come as both sides look for ways to resolve the pitched battle over Hollywood’s industry-reshaping deal, which would put HBO, CBS, CNN, TBS, Food Network, Comedy Central and the Paramount and Warner Bros. studios under one roof. Bonta and 11 other Democratic state attorneys general sued in July to block it, and Ellison’s team has been stoking political pressure on Bonta to retreat.

Bonta canceled preliminary last month after details of a session on ground rules leaked, accusing Paramount of “playing games” by violating a confidentiality agreement and spreading misinformation.

Bonta’s Paramount case appears to have ruffled the Trump administration. He sued one month after the U.S. Justice Department blessed the merger without demanding concessions — a decision he said showed federal officials were not doing their jobs to enforce antitrust law. This week the department weighed in on Paramount’s side.

“The United States enforces the federal antitrust laws and has a strong interest in their correct application,” the Justice Department said in a Tuesday filing, describing its unique position to bring antitrust actions. Its “statement of interest” argued that the plaintiffs had sued as “private persons,” who must clear higher hurdles than the federal government.

The department also asked the judge to force California, the other states and the Writers Guild of America to post a $1.88-billion bond, covering fees Paramount would owe Warner Bros. Discovery shareholders if the deal isn’t finalized by Oct. 1. Paramount agreed to the so-called ticking fees earlier this year, confident the deal would sail through regulatory review. Bonta’s office said Wednesday it stands by its earlier filings arguing it should not have to post the bond. A hearing is set for Sept. 24.

Paramount’s chief legal officer, Makan Delrahim, has been quarterbacking the campaign for Warner Bros. Discovery. He served as Trump’s antitrust chief in his first administration, when he led an unsuccessful effort to block AT&T’s takeover of the company, then known as Time Warner Inc. That 2018 deal was the first of two acquisitions that saddled Warner Bros. with instability, strategic misfires and a mountain of debt, paving the way for the Paramount bid — which would mark the third time in a decade the storied studio has changed hands.

Trump has been eager for Ellison to shake up CNN, a Warner property, following his reboot of CBS News, which has coincided with diminished ratings at “60 Minutes”.

Ellison’s company has won approvals from more than 65 international regulators, and Paramount expects the Trump-appointed Federal Communications Commission leadership to sign off on a foreign ownership arrangement that would give Middle Eastern royal families a nearly 50% equity stake in the merged company. Bonta’s lawsuit is the remaining obstacle to closing.

Paramount Skydance Chief Executive David Ellison faces a pivotal decision: Should he uproot his Hollywood studio — the birthplace of such film classics as “Sunset Boulevard,” “The Godfather” and “Beverly Hills Cop”?

Paramount floated shifting its home base to Tennessee or Texas in July, hoping to deter California Atty. Gen. Rob Bonta from waging a legal battle to block Paramount’s $111-billion acquisition of Warner Bros. Discovery.

Bonta rejected the tactic, calling it “blackmail.” His antitrust lawsuit, filed in collaboration with 11 other Democratic state attorneys general, has since stalled the largest Hollywood merger in decades and put Ellison in a jam.

The 43-year-old tech scion — a film aficionado who has spent two decades building his career in Hollywood — has told associates he doesn’t want to leave L.A. But he has signaled that he’s prepared to sell the historic studio lots and move Paramount’s and Warner Bros.’ operations from California if the merger isn’t finalized by next month, according to people familiar with the situation who were not authorized to comment.

The prospect has rattled a region already reeling from steep declines in film production, heavy job losses, empty soundstages and shuttered small businesses.

“It would be devastating,” Assemblymember Rick Chavez Zbur, who represents a district that includes the Melrose Avenue movie lot and neighborhoods near Warner Bros. in Burbank, said of a Paramount move. “We need to do everything we can to protect these important jobs in California’s iconic industry.”

Paramount declined to comment.

Ellison is frustrated after securing approvals from more than 65 regulators worldwide for the mammoth merger that would bring HBO, CNN, CBS, Comedy Central, MTV and TBS under the same roof.

Bonta’s lawsuit stands in the way.

“California is the fourth-largest economy in the world and the best place to do business,” a spokesman from Bonta’s office said. “Strong antitrust enforcement is essential so everyone can benefit from a vibrant economy.”

A federal judge in Oakland temporarily blocked the deal, prompting Paramount to agree not to finalize the acquisition until after a trial or June 1, whichever comes first. Settlement talks collapsed in late August after Bonta accused Paramount of leaking and misrepresenting their discussions.

Paramount has plenty at stake. U.S. District Judge Araceli Martínez-Olguín set the trial for March, but the company urgently needs the valuable Warner assets to better compete against tech behemoths. And beginning Oct. 1, Paramount must increase its payout to Warner Bros. Discovery shareholders by $7 million a day, so-called ticking fees that will heap more debt onto the highly leveraged transaction.

Paramount asked the judge to require California and other plaintiff states, including Nevada, Oregon and New York, along with the Writers Guild of America (which also sued) to post a $1.88-billion bond that could compensate Paramount for ticking fee costs. A hearing is set for Sept. 24.

For weeks, Paramount’s most potent weapon has been its in-the-works plan to leave L.A.

Lobbying has been intense, prompting a parade of politicians led by Gov. Gavin Newsom, L.A. Mayor Karen Bass and gubernatorial nominee Xavier Becerra to urge the two sides to settle the lawsuit.

“It’s a game of chicken,” Kevin Klowden, an economist and managing director at the Melcene Advisory firm, said in an interview. “But I’m not dismissing the threat because it is very real.”

Relocating from Los Angeles would allow Ellison’s cash-hungry media company to qualify for lucrative tax incentives offered by another state. Ellison’s short list includes Tennessee, Texas and Georgia. But leaving its longtime home would be costly for Paramount too, given how much of the talent and deal-making remains concentrated around L.A.

Tennessee’s Department of Economic and Community Development declined to discuss its negotiations with Paramount, but in a statement a spokesperson said the state “remains committed to working with companies across a wide range of industries that are exploring opportunities to invest and grow in Tennessee.”

Early this month, a pro-merger group was set to hold a news conference outside Paramount, but it moved its gathering to a warehouse a few blocks away after anti-merger activists planned a counterprotest.

The pro-merger organization, Neighbors for Strong Communities, was incorporated in Washington, D.C., in June and has lobbed text messages to Californians urging them to press Bonta to drop the case.

Speakers were concerned with just one issue: What would happen should Paramount pull out?

“What are we going to do with all these people who have invested their lives and many generations into building something here?” asked Keyla Wood, who moved from Mexico to L.A. about a decade ago after getting her start in Spanish-language soap operas.

“It’s been one thing after the other: The pandemic, the strikes and then it was the fires,” said Wood, who has worked as a stand-in for Eva Longoria and Salma Hayek. “So many people never work again.”

David Ellison is deciding whether to leave Hollywood.

(Bloomberg via Getty Images)

L.A.’s very identity is at stake, added Daniela Kelly, an actor and dancer who arrived from Brazil two decades ago.

“Everyone in the world sees Los Angeles and Hollywood as the platform for their dreams,” Kelly said. “Imagine if a huge studio with 100 years of history here just leaves? What will we be?”

Businesses like Kelly’s small Kreashen Studios USA, which provides video and podcasting space in Marina del Rey, depends on the region’s entertainment economy.

“It’s difficult financially right now to keep open,” she said. “So I’m pro having Paramount stay because this is the center, the heart of Hollywood.”

But deal opponents and some experts say the merger would actually worsen L.A.’s already bleak production picture.

Paramount has promised to cut $6 billion in expenses — a figure that doesn’t factor in the cost of ticking fees, which would add $650 million each quarter to the $81 billion that Paramount had anticipated paying Warner shareholders.

“We’ve seen from previous mergers that jobs have been lost,” L.A. City Councilmember Adrin Nazarian said at a City Hall event recently.

Combining Paramount and Warner could result in the elimination of nearly 4,500 positions over three years and put at risk an additional 5,865 jobs within businesses that serve the studios, according to an August report by the Los Angeles County Department of Economic Opportunity.

“When you look at the economic impact, it’s pretty staggering,” Kelly LoBianco, the department director, said in a recent interview. “An estimated $4 billion in economic output lost, and another $550 million lost in tax revenue at the local, state and federal level.”

The merger also could erase $79 million in tax revenue to Los Angeles County even if Paramount stays in L.A., she said.

But state and county tax revenue would plummet further should Paramount dispatch hundreds of its workers to Tennessee or some other state, Klowden said.

“If Ellison moves all the management out and all of the productions out, you’re talking about potentially tens of thousands of jobs,” Klowden said. “That, bluntly, isn’t just devastating to L.A. That becomes devastating to everybody.”

A report commissioned by Paramount from Los Angeles Economic Development Corp. predicted even steeper losses of at least 28,000 jobs should the studio move its entire operation out of state, according to a draft report given to Politico.

Under a less dire scenario, Paramount could shift its corporate headquarters to another state to qualify for incentives but still maintain large staffs in the creative hubs of Los Angeles and New York, where the company has its legal headquarters.

When the Ellison family acquired Paramount from the Sumner Redstone family last year, Ellison shifted operations to L.A., where he and other key executives work on the Melrose Avenue lot.

The threat to pull up stakes has created a disconnect after Ellison has spent more than a year touting how his family’s growing collection of media properties would strengthen traditional Hollywood.

The relocation campaign echoes a tactic used by software giant Oracle Corp., co-founded by Ellison’s billionaire father, Larry Ellison. For three decades, Oracle thrived in Redwood City, Calif., but in 2020, the company moved its headquarters to Austin, Texas, joining other California tech firms leaving in protest of the state’s high taxes.

The elder Ellison announced in 2024 that Oracle would be moving again, this time to Nashville, although that relocation hasn’t been finalized.

Paramount would risk leaving behind a skilled talent pool filled with experienced production workers and entertainment executives, Klowden said.

Fleeing L.A. could prompt “a talent bleed-out,” Klowden said. “Creative types are like: ‘Would I feel comfortable moving there?’ And, ‘What if I move there and something goes wrong? There would be nowhere else for me to go.’”

He pointed to Nissan’s 2006 U.S. headquarters move to the Nashville area from Gardena in L.A.’s South Bay, which dramatically reset the automaker’s workforce as fewer than half of its Southern California employees made the trek to Tennessee.

On Friday, a magistrate judge told both sides to identify dates in late October to meet for court-ordered settlement talks.

Each has motivations to settle — including avoiding a years-long court fight. Bonta has said Paramount must be willing to part with assets to alleviate market concentration, which could lead to a sale of Warner’s New Line Cinema, which has rights to “The Lord of the Rings” and “The Conjuring” franchises, and potentially cable channels such as CNN, Food Network or Cartoon Network.

Paramount, as part of a settlement, could abandon plans to leave L.A.

“All of the parties need to understand what this [issue] means to workers and small businesses,” Zbur, the local Assembly member, said. “I’m hopeful for a settlement that assures that Paramount and Warner Bros. will maintain their operations and remain a significant economic and employment force in Los Angeles.”

Times staff writer Cerys Davies contributed to this report.

Billionaire comedy duo Trey Parker and Matt Stone are unveiling a new name for “South Park” ahead of the show’s 29th season: “South America.”

The satirical series’ name change follows President Trump’s renaming of Lake Ontario to Lake America amid the escalating U.S.-Canada trade war. Last week, tech behemoths Apple and Google honored Trump’s executive order and renamed the Great Lake on their maps for U.S. users.

Parker and Stone made the announcement on social media on Tuesday, writing, “Inspired by the bravery and patriotism of Apple and Google, we are changing the name of South Park to SOUTH AMERICA. We especially want to thank our parent company Paramount — a Skydance Capitulation.”

The duo also jabbed at their parent company and its new owner, Skydance Media, for what media critics have characterized as caving to the Trump administration’s Federal Communications Commission. The “capitulation” involved controversial corporate and programming adjustments as well as agreeing to a $16-million settlement over a lawsuit brought by Trump involving a “60 Minutes” segment to get Paramount’s $8-billion merger with Skydance approved.

Last year, following a particularly incendiary episode of the show — in which a parody of Trump has an X-rated fling with Satan, and the president is portrayed as having an animated micropenis — the White House issued a statement to Variety slamming the series.

“The Left’s hypocrisy truly has no end — for years they have come after ‘South Park’ for what they labeled as ‘offense’ [sic] content, but suddenly they are praising the show,” White House spokesperson Taylor Rogers said in a statement to the outlet. “Just like the creators of ‘South Park,’ the Left has no authentic or original content, which is why their popularity continues to hit record lows.”

Last week, “South Park,” won an Emmy Award for outstanding animated program. And last summer, Parker and Stone reached a five-year, $1.5-billion deal with Paramount to secure exclusive global streaming rights on Paramount+, making the series one of television’s most valuable shows and its creators two of the highest-paid comedy writers in the biz.

The 29th season of “South America” premieres Sept. 16 at 10 p.m. on Comedy Central.

Dozens of Jewish artists are defending Mark Ruffalo after Paramount Skydance branded the actor’s criticisms about software company Oracle Corp. as “antisemitic tropes.”

Support for the actor comes as Paramount Chief Executive David Ellison has struggled to get its $111-billion Warner Bros. Discovery merger over the finish line amid considerable opposition.

Ruffalo has long been an irritant to Paramount as he is a leading figure in a high-profile Hollywood campaign to block the merger. In an Instagram post late last month, Ruffalo blasted Larry Ellison’s Texas-based software company Oracle for assisting with technology to help Israeli military efforts, including in Gaza — a conflict that Ruffalo and other progressive activists have opposed because of the killing of Palestinians.

In an open letter, signed by more than 150 filmmakers, academics, writers and even a few rabbis, the group denounced “the outrageous smear campaign against our respected colleague Mark Ruffalo.”

“Enough with the false and dangerous weaponization of charges of antisemitism against those who are brave enough to point out the obvious: that the assault on the Palestinian people and the assault on our liberties at home are deeply interconnected, and there is nothing antisemitic about recognizing that fact,” the group wrote.

Tuesday’s letter was signed by several high-profile filmmakers, including Joel Coen, Hannah Einbinder, Tony Kushner, Lisa Cholodenko, Ilana Glazer, Frances Fisher, Todd Haynes and Sarah Kunstler.

The group tied David Ellison’s merger ambitions to his billionaire father’s expansive network of businesses, which now include TikTok. Larry Ellison is personally guaranteeing the equity needed for Paramount to buy Warner Bros. Discovery, and the family will become controlling owners of the merged entity.

However, the Hollywood merger is stalled because of an antitrust lawsuit brought by California Atty. Gen. Rob Bonta and 11 other Democratic state attorneys general, including from New York, New Mexico, Colorado, Nevada and Oregon. Paramount agreed to pause the transaction until the court case can be decided.

A trial is set for March 2 in Oakland, but Paramount has been agitating for industry leaders and politicians to pressure Bonta to force a settlement that would allow the deal to go through.

“The proposed merger of Paramount and Warner Brothers Discovery is no mere combination of two huge multinational companies,” the group wrote in the letter. “Yes, it will destroy thousands upon thousands of livelihoods. Yes, it will further consolidate the oligarchic control of our media (witness the gutting of CBS News). Yes, it will strangle competition and creativity in film and television production and distribution.”

The group painted the Paramount-Warner Bros. merger as “part of a larger project of tech-driven domination, a project Larry Ellison and his partners have never been shy about trumpeting — and one they themselves have explicitly linked to their support for the ongoing depredations being visited on the people of Palestine and their silencing of critics of those horrors,” the group wrote.

Paramount declined to comment.

The merger fight has grown increasingly ugly in recent weeks after Paramount threatened to leave California if Bonta continued his court fight to unravel the deal. Paramount suggested it would pull up stakes from its Melrose Avenue film studio as soon as this fall.

Then, on Aug. 21, the company accused Ruffalo of injecting “antisemitic tropes” into the opposition campaign to thwart the industry-reshaping merger that would bring HBO, CBS News, CNN, TBS and the Warner Bros. and Paramount film and TV studios under the same roof.

Leaders of prominent Jewish organizations, including the Simon Wiesenthal Center and the Anti-Defamation League, came to Paramount’s defense, blasting the Emmy-winning actor known for playing the Hulk and roles in productions for HBO.

Ruffalo defended himself, saying he was not being antisemitic. He said he was speaking out against Oracle’s use of technology to assist Israel’s military in the war in Gaza, “what we now have come to see as a genocide, which was built on an apartheid system of oppression powered by Oracle,” Ruffalo wrote in his post.

Paramount leaders have branded some of the opposition to the deal as “antisemitic.”

“Pointing out the crucial connections between what is happening in Gaza and what is happening in Hollywood is the exact opposite of antisemitism,” the group wrote in the open letter. “It is, for us, the very essence of Jewish ethical duty.”

The letter cited recent polls that reflect a majority of “American Jews now agree that Israel is committing war crimes in Gaza; and four in ten even agree that these crimes amount to genocide,” the group wrote. “Do those attacking Mark Ruffalo as an antisemite seriously believe that all these American Jews are antisemites too?”

Bonta abruptly canceled settlement talks last week, but extended an olive branch to Paramount by saying he would be willing to meet with the company to discuss ways to address his antitrust concerns.

California Atty. Gen. Rob Bonta made it clear Tuesday he holds the power to extract major concessions in the battle over the proposed Paramount-Warner Bros. merger.

A day after canceling settlement talks, Bonta said he remains open to meeting with Paramount Skydance executives to find remedies to resolve the antitrust lawsuit stalling David Ellison’s $111-billion takeover, but called on the company to end its “amateur hour” conduct.

“If you want to have an adult, legitimate, serious settlement discussion — no problem,” Bonta said during an appearance in Los Angeles. “But if you want to play games, we’ve got better things to do.”

The attorney general, who is leading the coalition of 12 states that filed an antitrust lawsuit to block the merger, repeated his stance that Paramount must make significant concessions to end the court battle — such as selling cable television channels. However, Ellison has been resistant because his company will need the steady cash-flow from Warner’s basic cable channels, including TBS, TNT and CNN, to make payments on $80-billion in debt Paramount will take on to finance the industry-reshaping deal.

Ellison’s promise to release 30 movies a year, following the merger, won’t cut it, the attorney general said.

Bonta, who was speaking at press conference to highlight public safety, expressed frustration with Paramount afterweeks of drama.

Paramount first threatened to leave California if Bonta continues to wage his court battle. Then, on Friday, Paramount accused actor Mark Ruffalo (a staunch deal critic) of making antisemitic comments, prompting prominent Jewish organizations to join the fray. One Jewish leader suggested Bonta was in cahoots with Ruffalo.

That wasn’t the issue, Bonta said, specifically pointing to leaks about the settlement talks that appeared in various news outlets.

Some reports suggested Bonta’s office sought the negotiations amid withering political pressure. Gov. Gavin Newsom, Los Angeles Mayor Karen Bass and Xavier Becerra, the Democratic nominee for governor, have separately urged a settlement to end the antitrust fight.

Bonta set the record straight: “Paramount reached out to us to have settlement discussions,” he said. “They asked for them.”

Bonta’s beef was that the substance of the nascent negotiations appeared in newspaper articles despite both sides agreeing to hold confidential talks, Bonta said, adding that crossed the line. The Wall Street Journal reported that California’s top prosecutor planned to ask Paramount for agreements to keep Warner Bros. and the Paramount Pictures film studios separate units as well as an agreement to sell some cable channels.

“We thought they were reaching out to us in good faith … unfortunately, they violated the rules of engagement,” Bonta said. “They leaked lies to the press while we were in settlement negotiations. That’s not okay … That is amateur hour.”

Paramount declined to comment. On Monday, Paramount denied it was the source of the leaks.

Bonta’s comments appeared as a show of strength after major court wins.

The coalition of attorneys general, who also represent New York, New Mexico, Colorado, Nevada and Oregon, last month won a temporary restraining order that blocked Paramount from closing the deal. Rather than lose in a hearing over a more consequential preliminary injunction, Paramount voluntarily agreed that it would not finalize the transaction until after the trial or by June 1, whichever date comes first.

U.S. District Court Judge Araceli Martínez-Olguín set a March 2 trial, which was in line with the plaintiff states’ request. Paramount had lobbied for a November date.

“We are winning in this lawsuit,” Bonta said. “They have eight of the biggest law firms in the country, making every imaginable argument under the sun. And they lost, the judge said: ‘You are likely to lose this case’… the states are likely to succeed on the merits.”

For now, no new settlement talks are scheduled.

Bonta expressed an openness to finding a truce.

“If they are willing to clean things up, put a lid on their lying leaks and engage in a way that is sincere and in good faith, we will be where we always are … happy to meet,” Bonta said.

Staff writer Kevin Rector contributed to this report.

California Atty. Gen. Rob Bonta abruptly pulled out of a planned mediation session Monday to seek a resolution to the antitrust lawsuit that has stalled Paramount’s blockbuster $111 billion merger with Warner Bros. Discovery.

Bonta, in a statement, cited Paramount’s alleged leaking and misrepresenting information the two sides discussed during a preliminary session Friday.

Representatives of Bonta and Paramount Skydance came together late last week to set ground rules for Monday’s meeting, which was to involve Paramount Skydance Chief Executive David Ellison.

One of the rules had been confidentiality of the mediation process.

“I have pulled down this meeting,” Bonta said in a statement. “As I have said before, generally for all cases, I prefer to resolve disputes in the boardroom, not the courtroom. As I’ve also said, if the opposing party in litigation wants to meet in good faith to make a sincere effort to resolve the case.”

Bonta went on to say “Not only did Paramount leak the alleged substance of the settlement discussions, but they misrepresented these discussions, demonstrating a lack of good faith.

“As soon as Paramount stops playing games and engages sincerely, my office is happy to meet again.”

This is a developing story.

As political pressure builds to resolve the standoff between California Atty. Gen. Rob Bonta and Paramount Skydance Chief Executive David Ellison over his company’s proposed Warner Bros. merger, the two sides are set to face off in a court-ordered mediation session this week.

It’s not clear whether Monday’s meeting will lead to an immediate breakthrough because the parties remain far apart on business concessions that Bonta has said are necessary to settle the antitrust lawsuit that has stalled Ellison’s proposed $111-billion takeover.

In addition, the fight has grown increasingly ugly after Paramount threatened to leave California. Then, on Friday, the company accused actor Mark Ruffalo — a prominent deal critic — of injecting “antisemitic tropes” into the campaign to thwart the industry-reshaping deal.

Leaders of prominent Jewish organizations, including the Simon Wiesenthal Center and the Anti-Defamation League, quickly came to Paramount’s defense, scolding the Emmy-winning actor best known for playing the Hulk and in numerous productions for HBO, the premium channel that Paramount is hoping to buy. Ruffalo is also known for being an outspoken political progressive.

“We are, as always, troubled when antisemitic tropes are invoked,” Paramount said in a statement. “Words like ‘genocide’ and ‘apartheid,’ applied to a corporate transaction, aren’t just wrong — they’re a bridge too far.”

The fracas began last week when Ruffalo highlighted support for Israel by Ellison’s father, Larry Ellison, and his software company, Oracle Corp., which has worked with the Israeli military amid the Israel-Gaza war.

Ruffalo recirculated a two-year-old video clip of Safra Catz, Oracle’s former CEO and a current Paramount board member. During an Israeli-American Council National Summit conference, she said she couldn’t discuss Oracle’s work with Israel’s military, but “we have some profoundly scary technology at Oracle and we wanted to make sure that it was available” to Israel after the Oct. 7, 2023, terror attacks by Hamas.

Ruffalo, in his post, described the war in Gaza as a “genocide” that “was built on an apartheid system of oppression powered by Oracle.”

In a subsequent post, Ruffalo defended his right to speak out against Oracle and the war in Gaza.

Mark Ruffalo stars in HBO’s drama “Task.”

(Peter Kramer / HBO)

“The accusation that I am antisemitic is appalling and fundamentally dishonest,” Ruffalo wrote on X. “Criticizing the actions of the Israeli prime minister, a military technology contract, or the executives who supply it is not the same as criticizing Jewish people.”

The fight intensified Sunday when Mark Goldfeder, head of the National Jewish Advocacy Center, lashed out at Bonta and suggested California’s top law enforcement official was doing Ruffalo’s bidding by filing the antitrust lawsuit.

“Your friend @MarkRuffalo said the quiet part out loud. His campaign against the Jewish Ellisons is about Israel, ‘genocide’, and ‘apartheid’,” Goldfeder wrote in a message on X directed at Bonta.

“Did you hear that too before you sued?” Goldfeder asked — a reference to a Feb. 27 message by Bonta, who at the time was responding to Ruffalo’s dismay after Paramount won the bidding war for Warner Bros., which also owns CNN.

In a nearly six-month-old post on X, Bonta wrote: “Mark, I hear you. I’m in conversation with my AG colleagues about Paramount/Warner Bros. As the epicenter of the entertainment industry, California has a special interest in protecting competition.”

Bonta and 11 other state attorney generals, all Democrats, from states including Colorado, Washington, Nevada and New York, filed the antitrust suit last month.

Paramount declined to comment on the latest developments.

Ruffalo has long been an outspoken critic of Israel’s involvement in Gaza. He’s also been a major irritant to David Ellison and other top Paramount executives as the actor took a starring role, drumming up opposition in Hollywood to Paramount’s proposed takeover of Warner Bros.

He helped lead a campaign that garnered signatures of more than 5,000 entertainment workers, including Ben Stiller, Bryan Cranston and Jane Fonda, who spoke out against the merger and its potential effect on Hollywood’s creative community.

Gov. Gavin Newsom has been privately advocating for a truce, in part, to avoid seeing another pillar of industry — the Paramount film studio — leave the state. Newsom reportedly said that he took Paramount’s threat “seriously.”

Mayor Karen Bass has also pushed for a settlement, which the Writers Guild of America criticized, accusing Bass of joining “Paramount’s pressure campaign,” when jobs are at stake.

A Los Angeles County report estimated that 4,500 jobs would be lost in Los Angeles if the merger goes through.

In recent weeks, key movie theater owners have scaled back their opposition, calling for talks to find a truce.

Bonta, in several interviews, has stressed the deal is about competition and antitrust law — not politics.

Paramount would have to sell businesses, what he calls “robust structural remedies,” to make the deal work, Bonta said last week on CNBC. He views Ellison’s pledge to make 30 movies a year post-merger as insufficient and unenforceable once the transaction closes.

Paramount last week demanded that Bonta and the other states post a $1.88-billion bond if the case stretches to March, which is when the judge has scheduled the trial. Paramount must increase its payout to Warner shareholders through “ticking fees” every quarter until the deal is complete.

The mediation talks are part of the judicial process.

During the CNBC interview Bonta criticized Paramount for raising issues that he doesn’t see as central to his group’s antitrust lawsuit.

“We do prefer to resolve cases in the boardroom instead of the courtroom,” Bonta told CNBC, a response to Democratic nominee for governor Xavier Becerra, who earlier this month said he, too, would like to see a settlement.

“For now we’re bringing our case,” Bonta said. “I hope they can focus on the actual allegations we make in our complaint.”

A lawsuit filed in federal court on Friday accuses writer and director Taylor Sheridan of stealing the idea for his powerhouse success “Yellowstone” from Lauren J. Salkin, a Virginia-based journalist and screenwriter.

Requests for comment from representatives for Sheridan, Paramount and NBCUniversal, all among those named as defendants in the lawsuit, were not immediately returned on Saturday.

The lawsuit says that Salkin spent more than 10 years developing a series to be called “Sovereign Nation,” which is described as “a dramatic television series centered on tribal governance, casino-driven economic power, and a modern war over land and development” with the overall project copyrighted beginning in 2010 and a specific pilot script copyrighted in 2016.

Having submitted the project to Sheridan’s management company, Elevate Entertainment, in February 2017, according to the filing, Salkin later received an email message that included the statement, “Taylor thanks you very much for your interest. Unfortunately, he’s unavailable for TV projects.”

Soon after, Paramount greenlit Sheridan’s “Yellowstone” project, with the first episode airing on June 20, 2018.

The lawsuit goes on to catalog a list of similarities between “Sovereign Nation” and “Yellowstone,” stating, “What then appeared in ‘Yellowstone’ was not merely another Western about land or family. It included specific expressive choices already embodied in Salkin’s materials.”

Kevin Costner in “Yellowstone.”

(Paramount)

Actors Gil Birmingham and Danny Huston were mentioned in Salkin’s original pitch deck as potential casting ideas for her show. Both would later appear on “Yellowstone.” The lawsuit goes on to say that the subsequent “Yellowstone” spinoffs “1883,” “1923,” “Marshalls” and “Dutton Ranch” are therefore also based on Salkin’s work.

The lawsuit states, “Copyright law does not protect the abstract idea of a Western, a land dispute, an Indian casino, or a powerful family — and that is not Plaintiff’s claim. The infringement alleged here lies in the copying of Salkin’s particular expressive choices and their coordinated selection and arrangement.”

The lawsuit asks for a jury trial, an injunction against ongoing and future copyright infringement and unspecified damages.

“Yellowstone” ran for five seasons from 2018-2024. Sheridan, who is also behind shows such as “Tulsa King,” “Landman” and “Mayor of Kingston,” is set to move his production company from Paramount to NBCUniversal in 2029. Sheridan was also nominated for an Academy Award in 2017 for best original screenplay for the neo-western “Hell or High Water.”