Folks, it looks like the drama between Paramount and the parties suing to block its takeover of Warner Bros. Discovery is far from over. I mean, who doesn’t love a good corporate showdown? According to reports, representatives from both sides are set to meet next week for talks that could potentially lead to a settlement. But, let’s be real, these two sides are about as far apart as my political views and those of my liberal cousin at Thanksgiving dinner. The plaintiffs, which include a coalition of 12 Democratic state attorneys general, are still pushing for the merger to be blocked, citing antitrust concerns and the potential harm it could cause to Hollywood.
Apparently, the two sides are still pretty far apart, and the plaintiffs may prefer to take their chances in court at the antitrust trial scheduled to start next March. I can almost hear the lawyers sharpening their pencils and prepping for battle. California Attorney General Rob Bonta is playing hardball, saying that any resolution would have to include “robust structural remedies” that would change the shape of the media mega-merger. Analysts are warning that these remedies might be deal-breakers for Paramount, making any settlement talks ultimately unproductive.
It’s worth noting that Paramount is trying to merge its movie studio and television operations with WBD, the parent of CNN, HBO, Discovery, and many other assets. The Writers Guild of America has also filed a parallel suit, because why not? It’s not like they have anything better to do. The long road to trial is going to be expensive for Paramount, especially since a “ticking fee” will start raising the price of WBD beginning October 1.
Paramount has been pushing to get to the negotiating table, insisting that the WBD deal is pro-competitive and that the deal’s opponents are driven by political concerns. Bonta has disputed these charges, because of course he has. Numerous California politicians, including outgoing Gov. Gavin Newsom, have called for a pre-trial resolution to the conflict, likely because they’re tired of all the drama.
Newsom suggested that secret negotiations may already be underway, which is just perfect. Because what’s a good corporate showdown without a little secrecy and intrigue? Bonta has dismissed Paramount’s talk about potentially moving operations out of California as a “blackmail” attempt, but he’s said he’s ready for “good faith” talks with Paramount. I’m sure it’ll all be very civil and not at all contentious.
After Variety reported on Friday that Bonta’s office would be meeting with Paramount representatives on Monday to discuss a potential settlement, Bonta issued a statement that was basically just a big ol’ bucket of cold water. He said that any potential discussions about the Paramount-Warner Brothers merger would be unproductive absent “robust structural remedies” on the table that address their concerns. Structural remedies, for those playing at home, refer to divestitures, spin-offs, and other changes to the makeup of the combined company.
As part of the pre-trial process, the judge overseeing the case has indicated that Paramount and the plaintiffs would engage in mediation, because mediation is always a great way to resolve disputes without actually resolving anything. Former TV executive Evan Shapiro wrote in a blog post that people shouldn’t read too much into any scheduled meeting on Monday, since the judge has mandated that the parties meet to make good faith attempts to settle. Shapiro argued that Bonta’s team continues to “hold all the cards” despite Paramount’s push for a settlement.
In his late-night statement on Friday, Bonta said that the proposed Warner Bros./Paramount merger would mean higher costs, less competition, lower wages, job cuts, and fewer movies and TV shows. He also said that the merger violates long-standing federal antitrust law, and that they’re committed to enforcing the law. I’m sure it’ll all be very exciting and not at all a huge waste of time and money.
In conclusion, the drama between Paramount and the parties suing to block its takeover of Warner Bros. Discovery is still very much ongoing. It’s a bit like a bad reality TV show that you can’t look away from, except instead of a bunch of idiot contestants, it’s a bunch of rich corporations fighting over money and power. And honestly, who doesn’t love a good fight? As I always say, “you can’t make this stuff up,” and this story is definitely one for the books. So grab some popcorn, sit back, and enjoy the show – it’s going to be a wild ride!
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.
