Negotiations for a potential agreement between the owners of Paramount and California AG Rob Bonta have entered their final stages regarding the blocked purchase of Warner Bros. Discovery. Proposed terms based on reported email traffic include guarantees for domestic movie production in California, nominal separation between the studios, and protections for the editorial independence of CNN. Paramount shares rose as much as 6.3% in after-hours trading following reports that a settlement could be reached as soon as this weekend, provided Bonta secures sign-off from other state attorneys general including New York's Letitia James.

The Federal Communications Commission recently approved Paramount's request to allow foreign financing exceeding 25%, including stakes from Saudi Arabia's PIF at 15.1%, the UAE's L'imad Holding at 12.8%, and Qatar's sovereign fund at 10.6%. This ownership structure allows the Ellison family and RedBird to retain 100% voting control while foreign investors hold 49.5% of non-voting equity. The deal remains subject to a March trial and a $7 million daily fee starting October 1 if it stays unclosed.

Opposition to the merger persists from actor Mark Ruffalo and a petition signed by more than 75,000 people and 5,670 filmmakers who urged Bonta to reject the consolidation. Richard Grenell alleged that the priorities of national Democrats are ruining Hollywood and that 58,000 jobs and billions of dollars would leave Los Angeles if the merger proceeds under the current political climate.