PSKY, WBD Merger: Retail Says Ellison ‘Holds The Cards’ As High-Stakes Talks With Bonta Take Center Stage

Paramount CEO David Ellison and California AG Rob Bonta will discuss concessions Monday as California seeks structural remedies to clear the $110 billion Warner Bros. Discovery merger.

• California AG Rob Bonta wants Paramount to sell some cable networks and keep its film studio independent as part of a deal.
• Bonta wants binding structural changes, while Paramount has resisted asset sales. 
• California’s antitrust lawsuit remains a major obstacle, while Paramount CEO David Ellison considers moving the company’s headquarters out of California. 

Paramount Skydance Corp. (PSKY) CEO David Ellison and California Attorney General Rob Bonta are set to sit down Monday for high-stakes talks aimed at resolving a multistate antitrust lawsuit that has stalled the $110 billion merger of Paramount and Warner Bros. Discovery (WBD).

Paramount has secured clearance in 68 jurisdictions, but the 12-state antitrust challenge remains a major obstacle as ticking fees loom. 

PSKY, WBD Merger: Leaders Prepare For Direct Talks

California’s top law enforcement official plans to press Paramount Skydance for major concessions to clear the path for its takeover of Warner Bros. Discovery.

According to the Wall Street Journal’s report, State Attorney General Rob Bonta is preparing to demand that the studio giant shed certain cable networks and pledge to operate its film unit independently from Warner Bros. before approving the roughly $81 billion equity deal. 

California joined 11 other states last month in filing suit to halt the combination. The attorneys general contend the transaction would concentrate excessive power in theatrical film distribution and basic cable programming, while also raising issues around production capacity and worker employment.

Structural Fixes Versus Soft Promises

Bonta wants legally binding changes, not just promises. Paramount has offered to release 30 movies a year after the deal but has resisted selling assets or taking steps that could reduce its cost savings. 

Bonta seeks to keep the Warner Bros. film studio running with minimal oversight from Ellison’s team. Paramount Skydance has secured regulatory approval in 68 jurisdictions for its proposed acquisition, leaving California’s antitrust lawsuit as a key remaining hurdle.

California Gov. Gavin Newsom said he would prefer a settlement if it is favorable for the state, while Attorney General Rob Bonta said any deal would require “robust structural remedies.” Meanwhile, Paramount CEO David Ellison is reportedly considering moving the company’s headquarters out of California, potentially starting as early as October 1.

A California judge has scheduled a 12-day antitrust trial for March 2, 2027. The delay could cost Paramount more than $1.6 billion in shareholder payments. 

What PSKY Retail Traders Are Saying 

On Stocktwits, retail sentiment around the stock remained in ‘bullish’ territory. 

A user said, “I wouldn't give the state lawyers any concessions at all. First the federal govt has already signed off on it. Second nearly  every "person who maters" in the foreign markets has signed off on it. In all cases there were no massive strings attached before the deal was approved. Why would you give any concessions if everyone involved who trumps a state lawyer has already said "deal approved"

Another user said, “my money has always been on Ellison…… Bonta the Bozo will be begging Ellison for a deal…… Ellison holds 90% of the cards here vs Bonta and when you hold 90% you win.” 

A third user said, “Bonta is so full of BS.  Clearly we all know that $NFLX has already eroded the industry with lower wages, less jobs,  fewer movies , etc.  I cannot believe the level of hypocrisy from Bonta.  

PSKY is trying to make the industry better and restore 2 of the oldest studios to their original glory.  And this brain dead AG has the audacity to pursue this lawsuit.”

PSKY stock has declined nearly 23% year-to-date. 

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