Paramount and California Attorney General Rob Bonta will meet for high-stakes talks Monday over possible a settlement in the state’s antitrust case against the company.

Attorney General Rob Bonta and 11 other states have sued to stop Paramount’s $111 billion merger with Warner Bros. Discovery, which is is currently on hold for a March trial in federal court in Oakland.

The two parties have said they’re open to negotiations for a settlement but so far have been unable to reach an agreement.

Bonta said Thursday it would need “robust” concessions from Paramount boss David Ellison to address any anticompetitive risks from the merger.

“If Ellison and Paramount want to come to the table in good faith and talk, we want to talk, too. We’re happy to have that conversation,” Bonta said.

Bonta has called the merger “unlawful” and said it would lead to “higher prices, lower quality, and less content for film and television, harming movie theaters, basic cable distributors, and ultimately, audiences on every sofa and movie theater seat in the U.S.”

Ellison is eager to reach a settlement, since a lengthy court battle could force Paramount to shell out an extra $7 million per day until the deal is closed. Paramount reportedly asked for the Monday meeting.

The talks will include senior executives and lawyers for Paramount and top lawyers with the attorney general’s office, the New York Times reported.

Paramount has pledged various commitments to try to get a deal done, such as promising to make 30 films a year for the next three years. Those proposals have gone nowhere with Bonta.

The company has said it is considering moving its Hollywood studios out of California over the lawsuit.

Ellison told his top lieutenants that the company would relocate to Tennessee, Texas, Georgia — with Ellison even eyeing a new base in Austin.

The high-stakes talks will be watched by many top California figures given its outsized impact on Hollywood and the state’s economy.

Gov. Gavin Newsom and Los Angeles Mayor Karen Bass have all called for a settlement to avoid a lengthy and costly court battle.

“While there are varying perspectives on the proposed transaction, today we are united around one clear message: It is time for all parties to come to the table,” Bass has said. “The continued uncertainty is not
good for workers, not good for productions and not good for the future of this industry.”