Daijiworld Media Network - Los Angeles
Los Angeles, Aug 23: Paramount and California state officials are set to meet on Monday to discuss a possible settlement in the state's lawsuit seeking to block Paramount's proposed acquisition of Warner Bros. Discovery, The New York Times reported on Saturday, citing people familiar with the discussions.
The talks are at a preliminary stage and there is no guarantee that they will develop into substantive settlement negotiations, the report said. Paramount reportedly requested the meeting.
The meeting is expected to include senior executives and lawyers representing both sides and has been under discussion for a little over a week, according to the report.
Reuters said it could not immediately independently verify the report. Paramount also did not immediately respond to a request for comment outside regular business hours.
The development comes after California and 11 other US states filed a lawsuit last month seeking to stop Paramount's proposed $110-billion acquisition of Warner Bros. Discovery.
The states have argued that the transaction would reduce competition in film distribution and cable television, potentially harming movie theatres, pay-TV distributors and consumers.
The lawsuit alleges that the proposed merger could give the combined company greater control over the entertainment market and reduce competition in ways that could result in higher prices for consumers.
States including New York, Arizona and Minnesota have also raised concerns that the deal could negatively affect theatres and television distributors, while potentially weakening competition over wages for workers in the industry.
The proposed acquisition has attracted significant regulatory and political scrutiny because of the size of the transaction and the position the combined company could hold across film, television and streaming markets.
Monday's meeting could provide an initial opportunity for Paramount and California officials to explore whether the dispute can be resolved without continuing the legal battle, although it remains unclear whether the discussions will lead to a formal settlement.