Folks, I’m sipping my coffee and reading about the latest drama between California’s attorney general and Paramount, and I have to say, it’s a wild ride. California’s attorney general has reportedly scrapped talks scheduled for Monday with representatives of Paramount over the company’s planned $110 billion takeover of Warner Bros. Discovery. I mean, that’s a lot of money, and I’m not surprised they’re having some issues ironing out the details.
The parties were due to discuss a potential settlement of California’s lawsuit that is attempting to block the merger, but it looks like those talks have been canceled. According to the New York Times, Attorney General Rob Bonta accused Paramount of leaking information from a Friday meeting between the two sides. That’s not exactly the kind of behavior you want to see when you’re trying to negotiate a deal.
In a statement to the NYT, Bonta said, “Not only did Paramount leak the alleged substance of settlement discussions, but they misrepresented these discussions, demonstrating a lack of good faith.” Wow, that’s some strong language. It sounds like Bonta is not happy with Paramount’s behavior, and I don’t blame him. I mean, who likes it when someone leaks confidential information and then misrepresents what was said?
Bonta also said that as soon as Paramount stops playing games and engages sincerely, his office is happy to meet again. I guess that’s a nice way of saying, “Get your act together, Paramount, and then we can talk.” CNN has reached out to Paramount and Bonta’s office for comment, but I’m not holding my breath for a response.
Paramount is trying to merge its movie studio and television operations with WBD, the parent of CNN, HBO, Discovery, the Warner Bros. studio, and many other assets. But a coalition of 12 Democratic state attorneys general, including California, filed suit last month to block the merger, arguing that it would violate anti-trust law and ultimately harm Hollywood by squeezing out competition. I can see why they’d be concerned – a merger of this size could have some big implications for the entertainment industry.
Despite the opening of talks, the two sides apparently remain far apart. Bonta said Friday night that any resolution would have to include “robust structural remedies” that would change the shape of the media mega-merger. Structural remedies refer to divestitures, spin-offs, and other changes to the makeup of the combined company. That sounds like a pretty tall order, but I guess we’ll just have to wait and see what happens.
A court date for an antitrust trial is scheduled for March – an expensive wait for Paramount. Under the merger agreement, Paramount must pay WBD shareholders roughly $7 million for every day after September 30 that the deal has not closed. Yikes, that’s a lot of money. I hope they’ve got a good accountant on staff.
Paramount has insisted that the WBD deal is pro-competitive, and has asserted that the deal’s opponents are driven by political concerns, including the prospect of CNN changing hands. Bonta has disputed those charges, and it sounds like they’re going to have to duke it out in court. I’m not sure what the outcome will be, but I’m sure it’ll be an interesting fight to watch.
In the end, it looks like this merger is going to be a long and complicated process. But hey, at least it’s making for some interesting reading. And who knows, maybe someday we’ll look back on this and laugh – or maybe we’ll just shake our heads and wonder what could have been. Either way, I’m just going to sit back, sip my coffee, and enjoy the show 🙄.
Armchair patriot. Believes in the free market, cold beer, and that there’s always a guy named George behind every CNN segment.
Former remote-throwing champion turned #1 couch commentator on liberal panic in the media. Born in Texas (or so his mug says), he earned a degree in Fake Newsology & Beer Philosophy from YouTube University.
