AILSA CHANG, HOST:
California's attorney general suddenly canceled a meeting scheduled for today about a proposed merger between Hollywood heavyweights. The $111 billion consolidation would join Paramount Skydance with Warner Bros. Discovery. Now, many people in the film industry want to block this deal, but now some are calling for a settlement. To make sense of all the latest twists and turns, we're joined now by NPR culture correspondent Mandalit del Barco here in Culver City, California. Hi, Mandalit.
MANDALIT DEL BARCO, BYLINE: Hi, Ailsa. So nice to be sitting next to you in the studio.
CHANG: Oh, it is. Face to face. OK, so just remind us, Mandalit, why this merger has been so controversial.
DEL BARCO: Yeah, so actors, writers and filmmakers are trying to block the proposed megamerger, and they believe that it would be disastrous for the film industry, could mean thousands of lost jobs, fewer films are made, higher prices for moviegoers. And the deal faces an antitrust lawsuit filed by attorneys general from 12 states, including California, as well as litigation by the Writers Guild of America, the WGA.
CHANG: Right. OK, so what does the chairman of Paramount, David Ellison, have to say about all of that now?
DEL BARCO: Well, a few weeks ago, he wrote a New York Times op-ed saying he loves movies and he's committed to putting out 30 films a year with the combined studios of Paramount and Warner Bros. But...
CHANG: That's a lot.
DEL BARCO: Yeah, right? Well, actually, it's about the same as they do now individually. But now, Ellison is apparently so put off by questions about his politics and these legal challenges that there's speculation he may move Paramount out of California...
CHANG: Whoa.
DEL BARCO: ...Unless the litigation is resolved by October 1. That's when Paramount has to begin paying Warner Bros. shareholders $7 million a day. During a recent Politico summit in Sacramento, Paramount's chief legal officer, Makan Delrahim, addressed the rumors that Ellison may move the studio out of Los Angeles.
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MAKAN DELRAHIM: His, I think, intent is to be committed to be California. There's a point at which where you have a duty, a fiduciary duty to your shareholders. You have to take a look at the business environment and look to see what's best for not only the community, the business, and ultimately, you know, go to the place where you're wanted.
CHANG: I mean, presumably, this threat to take Paramount out of Los Angeles has not gone over well, right? What's been the response?
DEL BARCO: Yeah, well, California state Attorney General Rob Bonta says it's an attempt to blackmail regulators. And during an interview with The Ankler, Bonta said Paramount seems to be grasping at straws.
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ROB BONTA: You know, literally, I can imagine them in some war room being like, guys, we're getting our butts kicked. What can we do? How can we impose some pressure? Hey, maybe we should threaten to leave California. How about that? It really just looks desperate.
DEL BARCO: Bonta says he's open to a settlement if Paramount negotiates in good faith. A judge in Oakland has already set a trial date for March.
CHANG: Wait, but what about the meeting that didn't happen today with the attorneys general and Paramount? Like, what was that supposed to be about?
DEL BARCO: Well, they were supposed to be meeting with Ellison and his team to begin discussing a possible settlement, but last night, Bonta called it off. And in a statement he shared with NPR, he said Paramount had leaked and misrepresented the alleged substance of the preliminary discussions. He said he'd be happy to meet again as soon as Paramount stops playing games.
CHANG: And real quick, Mandalit, here in California, it feels like this whole case is now seeping into state politics. Can you explain, like, how you've seen that playing out?
DEL BARCO: Yeah, California Governor Gavin Newson says he'd like both sides to settle out of court with certain caveats, and so does Los Angeles Mayor Karen Bass. Both of them say they worry about Paramount leaving Los Angeles. For decades, it was a film and TV capital, but it's been losing production to other cities, other states, other countries. And you have to remember that Paramount Pictures is 114 years old, the very last of the big legacy studios left standing in the actual place...
CHANG: Yeah.
DEL BARCO: ...Called Hollywood. So moving to Tennessee or Georgia or Texas would be a really big deal.
CHANG: Huge deal. That is NPR's Mandalit del Barco. Thank you, Mandalit.
DEL BARCO: Sure. Thank you. Transcript provided by NPR, Copyright NPR.
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