Paramount-Warner Bros merger: California may seek cable channel divestitures, film studio safeguards

California ​Attorney General Rob ​Bonta is expected to ask Paramount to ​divest some cable channels and commit to keeping its movie studio separate from Warner Bros. before he signs off on ‌their merger, ⁠the ⁠Wall Street Journal reported on Sunday, citing people familiar with the ​matter.

Paramount and California state officials are set to meet on Monday to discuss potential ways to settle the state's antitrust lawsuit, the report said.

Lawyers from both ​sides met on Friday to ⁠lay out ‌an agenda for Monday's meeting, including ​discussions about ​the cable and motion-picture businesses, the Journal ⁠reported.


Paramount, Warner Bros. Discovery, and the California Attorney ​General's office did not immediately respond ​to Reuters requests for comment outside regular business hours.

Last month, California and 11 states sued to block Paramount's $110 billion acquisition of Warner Bros., alleging the deal would lessen competition in film ‌distribution and cable television, harming theaters and pay TV distributors.

Some states argued the deal ​would harm ​theaters and television ⁠distributors, raise prices for consumers and make wages less competitive for workers.

Paramount has said the deal will allow ​it to produce more, not less, and CEO David Ellison has vowed the combined film studios would release 30 movies a year.

The states have called that commitment unenforceable.