California Attorney General Rob Bonta on Monday canceled a publicly announced meeting planned between his office and the Paramount Skydance Corporation, reportedly accusing the entertainment giant of “playing games.”
Bonta leads California in a 12-state lawsuit seeking to block Paramount’s merger with Warner Bros. Discovery, but on Monday he was planning to hold settlement talks with the company. The lawsuit was filed despite an investigation by the U.S. Department of Justice that determined the merger could move forward.
“Not only did Paramount leak the alleged substance of settlement discussions, but they misrepresented these discussions, demonstrating a lack of good faith,” said Bonta in a statement published by The New York Times. “As soon as Paramount stops playing games and engages sincerely, my office is happy to meet again.”
Bonta’s decision to cancel the meeting also comes as Paramount faces a serious financial hurdle due to the litigation. Beginning in October, Paramount will have to pay about $650 million per quarter in “ticking fees” if the deal has not been closed, but the trial is not scheduled to start until March 2027.
Bonta’s decision to cancel his meeting came just one day after The Wall Street Journal reported that Tennessee is now Paramount’s top destination under consideration if the company leaves California.
David Ellison, the CEO of Paramount, previously said the company would move if it does not reach a resolution with California by October 1. The company currently employs more than 30,000 people in Southern California.
After news broke that the company was considering relocating from the Golden State, Tennessee Department of Economic and Community Development’s Stuart McWhorter sent a letter urging the company to consider the Volunteer State.
“Our success is rooted in fiscal discipline, low taxes, predictable governance, and a steadfast belief that government should be a partner in private-sector growth,” said Whorter in a letter to Paramount. “Companies that choose Tennessee find more than a favorable business climate — they find a state committed to helping them succeed.”
Governor Bill Lee also urged the company to consider Tennessee in a July post to X.
“Tennessee is a place where innovation [and] creativity thrive,” wrote Lee. “Paramount has played an important role in shaping American culture, [and] we’d welcome the opportunity to see the next chapter of that story unfold in the Volunteer State.”
In addition to Tennessee, The Journal reported Paramount is considering relocating to Texas and Georgia.
Despite the talk of moving, other California leaders have urged the parties to reengage. Last week, days before Bonta would cancel the meeting and accuse Paramount of “playing games,” Los Angeles Mayor Karen Bass called for a “swift and urgent resolution” to the lawsuit.
“Productions in LA are hurting and hardworking Angelenos are out of a job because ongoing disputes over the proposed merger have stalled filming in our city – it’s time for all parties to come to the table,” said Bass.
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Tom Pappert is a 2025 recipient of the Dao Prize and the lead reporter for The Tennessee Star. He also reports for the Star News Network. Follow Tom on X. Email tips to [email protected].
