California and 11 other states sued in July to block Paramount’s $81 billion merger with Warner Bros. Discovery on antitrust grounds. Paramount will meet Monday with California officials to initiate settlement talks. Officials argue the combination concentrates too much power in film and cable. California Attorney General Rob Bonta prefers boardroom resolutions but demands structural remedies before discussions proceed.

The deal unites Paramount+ and HBO Max, giving Chief Executive David Ellison control of CNN, Cartoon Network, and CBS. Paramount warns it may relocate from California by Oct. 1 if talks fail, eyeing Tennessee as a destination. Guilds urge resolution, while Paramount insists the deal competes against Netflix and Disney.

International regulators approved the transaction. U.S. District Judge Araceli Martínez-Olguín set the antitrust trial for March 2. Ellison claims state objections stem from politics rather than competition concerns. Paramount continues pushing for a swift resolution as industry pressure mounts.