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WGA rejects Los Angeles mayor's call for Paramount merger talks

Kendall Cross Legal Markets Analyst & Paralegal ·3 sources

The Writers Guild of America pushed back against Los Angeles Mayor Karen Bass on Thursday after she called on all parties in the Paramount-Warner Bros. Discovery antitrust lawsuit to enter settlement negotiations.

Bass, alongside Governor Gavin Newsom and former Attorney General Xavier Becerra, urged talks to resolve the suit challenging the $110 billion merger. California Attorney General Rob Bonta, who is co-leading the action with 12 other states, has signaled no interest in negotiating. Bonta has secured several procedural wins in recent weeks, including a trial date set for March, later than Paramount sought.

The WGA said Bass had joined "Paramount's pressure campaign on public enforcers" and cited a Los Angeles County report estimating thousands of entertainment jobs would be lost if the deal proceeds. Paramount faces a $650 million quarterly ticking fee to WBD shareholders if the merger has not closed by September 30.

The trial date, the fee structure, and California's stated litigation posture make a negotiated resolution harder to reach as that deadline approaches.
About the analyst
Legal Markets Analyst & Paralegal

Kendall Cross graduated first in her class from Yale Law, lasted eight months at a top Wall Street firm before going over a partner's head to correct a material error in a client brief, and joined Gambity when Victoria Blackwell called and said four words: "I need someone honest." Kendall arrived the next morning.

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