California Attorney General Rob Bonta may ask Paramount to sell some cable channels before approving its merger with Warner Bros., the Wall Street Journal reported.
Bonta may also seek a commitment to keep Paramount’s movie studio separate from Warner Bros. The report cited people familiar with the matter.
Paramount and California officials are due to meet on Monday. They will discuss ways to settle California’s antitrust lawsuit, the report said.
Lawyers from both sides met on Friday to set the agenda. The talks will cover the cable and movie businesses.
Paramount and Warner Bros. Discovery declined to comment to Reuters. The California Attorney General’s office did not respond outside regular business hours.
California and 11 other states sued last month to block Paramount’s planned $110 billion purchase of Warner Bros. The states said the deal could reduce competition in film distribution and cable television.
They also said the deal could hurt theaters and pay-TV distributors. They warned that it could raise prices and weaken wage competition for workers.
Paramount has defended the deal. It said the merger would help it produce more content.
CEO David Ellison has promised that the combined film studios would release 30 movies a year. The states have said that promise would not be enforceable.
No final settlement has been announced. Monday’s talks may help determine whether California supports a deal or continues its legal challenge.
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