Paramount Skydance Corporation and California Attorney General Rob Bonta, alongside 11 other US state authorities, are exploring potential concessions in Los Angeles, United States, as part of efforts to resolve a Paramount Warner Bros Acquisition Deal dispute tied to Paramount’s proposed $110 billion takeover of Warner Bros. Discovery.

The discussions, reported by the Wall Street Journal, centre on avoiding a prolonged courtroom battle by reaching an out-of-court settlement that could reshape one of Hollywood’s most significant consolidation attempts in recent years.

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At the heart of the negotiations is a proposed $1.5 billion investment commitment in California’s film and television production sector.

The plan is being considered as a way to address concerns raised by the states, which filed a lawsuit in July seeking to block the merger on competition grounds.

The coalition of 12 states argued that combining Paramount and Warner Bros. Discovery could significantly concentrate market power, potentially influencing pricing and distribution across film and television industries in the United States.

Paramount Chief Executive Officer David Ellison has positioned the acquisition as a strategic transformation for the company, arguing that a combined studio would strengthen production capacity and unify a vast portfolio spanning film, television, and streaming services.

Further discussions reportedly include guarantees to keep major studio operations within California.

These commitments cover proposals not to sell key studio lots owned by Paramount or Warner Bros., as well as maintaining a long-term operational presence in the state.

Another area under consideration is Paramount’s pledge to produce at least 30 theatrical films annually following completion of the deal.

According to reports, failure to meet this target could trigger penalties, including the potential surrender of Paramount’s stake in Miramax, the studio behind acclaimed films such as Pulp Fiction and No Country for Old Men.

Additional proposals include the possible divestment of certain cable television assets and the establishment of a governance structure aimed at safeguarding CNN’s editorial independence under the merged entity.

A spokesperson for the California Attorney General’s office confirmed that any discussions remain confidential, stating that the office “cannot confirm or deny whether negotiations are taking place” or comment on reported details.

Paramount Skydance has also declined to comment publicly on the ongoing talks outside standard business hours.

The negotiations come amid reports that a settlement could be reached as early as the weekend, with independent oversight of CNN programming and film production commitments among the terms being evaluated.

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Industry analysts suggest that the outcome of the discussions could prove decisive in determining whether the blockbuster acquisition proceeds or faces further legal obstruction, marking a pivotal moment for Hollywood’s evolving media landscape.