Paramount seeks a deal with 12 states to clear the way for its Warner Bros. merger

Paramount Skydance is attempting to reach a settlement with the group of states seeking to block its merger with Warner Bros. Discovery (WBD). In a statement released Friday, the company said that with the deal already approved by regulators in dozens of countries worldwide, it's time for the parties to reach a compromise.

In its statement, Paramount said the "better path" instead of continuing litigation is "resolving this through a settlement that serves the interests of workers, consumers, and citizens in each of the 12 states." The company also accused the attorneys general of the 12 states suing it of acting in a way that "provides no benefit to their constituents, only harm."

This litigation aimed at blocking the deal has become the biggest obstacle to Paramount's plan to acquire Warner Bros., even though the merger has already been cleared by regulators in 68 countries. Because of the lawsuit led by California Attorney General Rob Bonta, Paramount was forced last month to push the deal's closing back to 2027, which could cost the company hundreds of millions — even billions — of dollars. Forbes requested comment from Bonta's office but had not received a response as of this writing.

Paramount CEO David Ellison said in the statement: "While we're confident the law and the facts are on our side, we've offered certain commitments and concessions, and we're prepared to work constructively with the state attorneys general to find a resolution that serves our employees in California and around the world, and the creative community — just as we did with regulators in 68 countries worldwide."

The $110 billion deal was announced in February, when Paramount won out over Netflix in the bidding battle. Under the agreement, if the deal isn't completed by September 30, Paramount must pay Warner Bros. shareholders a "ticking fee" (a daily penalty charged for late deal completion) of $0.25 per share per day. If closing drags on until June 2027, that could cost Paramount more than $1.9 billion.

The multistate coalition suing Paramount accuses the company of violating antitrust law and trying to stifle market competition — a move they say could drive up prices for consumers on cable television and movie tickets. A federal judge temporarily halted the deal in June.