Tensions are escalating between Paramount Skydance (hereinafter Paramount), which is pursuing a mega-merger with Warner Bros., and the state government of California.

According to the New York Times (NYT) on the 23rd (local time), California Attorney General Rob Bonta abruptly canceled an antitrust lawsuit negotiation meeting with Paramount the previous evening.

In a statement, Attorney General Bonta asserted, "Paramount not only leaked the contents of the negotiations but also distorted them, demonstrating that they are not engaging in discussions in good faith."

Paramount has not issued a statement regarding the matter.

Earlier this year, Paramount signed an agreement to acquire Warner Bros. Discovery for 110 billion dollars (approx. 152 trillion won).

Paramount, which has built a friendly relationship with U.S. President Donald Trump, passed the Department of Justice antitrust review and also received approval from authorities in the European Union (EU) and the United Kingdom.

However, antitrust lawsuits were subsequently filed, centered around state governments governed by the Democratic Party. As a result, Paramount has suspended its merger process with Warner Bros. Discovery until June 1 of next year or five days after a federal court ruling.

Following this, Paramount stated that it could discuss relocating its studio headquarters to a region outside of California.

According to a report by The Hollywood Reporter, the Lieutenant Governor of Tennessee, U.S., even sent an official letter directly to Paramount proposing the relocation of its headquarters.

Such a move could have a significant negative impact on jobs and tax revenue in California.

Paramount also launched a counteroffensive by demanding that 12 state governments, including California, and the Writers Guild of America deposit a total of 1.9 billion dollars (approx. 2.7 trillion won) with the court.

Since then, the California state government and Paramount have been conducting negotiations to smoothly resolve the antitrust lawsuit issue.

(Photo: Getty Images)