Paramount and the California attorney general’s office plan to meet Monday for early talks aimed at settling an antitrust lawsuit tied to Paramount’s pursuit of Warner Bros. Discovery, according to people familiar with the matter.
The discussions are described as preliminary. No agreement is expected immediately, and the two sides remain far apart on terms. The meeting represents the first direct step toward resolving a legal challenge that has clouded one of the media industry’s largest proposed deals.
California’s suit targets the antitrust implications of combining Paramount with Warner Bros. Discovery. State officials have raised concerns about concentration across film, television and streaming should the two companies merge. The lawsuit has stood as a hurdle for Paramount as it works to complete the acquisition.
Paramount has explored several routes to ease regulatory and legal pressure. The company earlier floated a potential sale of CNN as part of a settlement with California over the same matter. That option reflected the scale of divestitures regulators may seek before clearing a combined entity.
The deal itself has been contested for months. Warner Bros. Discovery reopened the door to Paramount’s offer earlier in the year while weighing competing merger interest. Theater industry leaders and other stakeholders have also voiced opposition to the tie-up.
A settlement with California would remove one obstacle, though it would not by itself guarantee completion of the acquisition. Federal regulators and other parties retain their own reviews of the proposed transaction.
Neither Paramount nor the California attorney general’s office has publicly confirmed the details of the planned meeting. The talks are expected to focus on the framework for any resolution rather than final terms.
No timeline for a settlement has been set. The lawsuit remains active pending the outcome of the discussions.