California seeks cable divestitures in Paramount-Warner deal

California Attorney General Rob Bonta is pursuing potential conditions before approving Paramount's $110 billion merger with Warner Bros. Discovery, including divesting some cable channels and safeguarding the separation of Paramount's film studio. Paramount and California officials are scheduled to meet on Monday to discuss a possible settlement to the state's antitrust lawsuit, with lawmakers eyeing concessions on both the cable and motion-picture sides. Regulators argue the deal could reduce competition in film distribution and cable networks, potentially harming theaters, pay-TV distributors, consumers, and workers. Paramount contends the merger would boost content production, with CEO David Ellison pledging about 30 movies per year after the merger. Reports suggest such concessions could form part of a settlement, though questions about enforceability and scope remain, and ticking fees add financial pressure to resolve the case. The talks illustrate the ongoing tension between regulators seeking structural remedies and Paramount aiming to advance the transaction with limited concessions.