California cancels talks with Paramount over Warner Bros merger

The New York Times reported on Saturday that talks between the two parties were preliminary, and there was no assurance that they would lead to meaningful negotiations toward a settlement.

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.

The Wall Street Journal reported earlier that Bonta planned 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, citing people familiar with the matter.

Aug. 24 (Reuters) - California's Attorney General Rob Bonta canceled a meeting with Paramount Skydance representatives scheduled for Monday to begin settlement talks over the state's lawsuit seeking to block Paramount's proposed acquisition of Warner Bros. Discovery, his office said.

Bonta accused Paramount of leaking details of a meeting held on Friday and acting in bad faith.

"Not only did Paramount leak the alleged substance of settlement discussions, but they misrepresented these discussions, demonstrating a lack of good faith," Bonta said, adding his office met with Paramount on Friday. "As soon as Paramount stops playing games and engages sincerely, my office is happy to meet again," Bonta added.

Paramount did not respond to Reuters requests for comment.