CNN’s Brian Stelter Reports Letitia James ‘Resisting’ Deal to Close Paramount-Warner Bros Merger

The Paramount Skydance and Warner Bros. Discovery merger has hit another roadblock, with New York Attorney General Letitia James and other “blue state” officials said to be “resisting” a settlement deal that would allow the merger to move forward, CNN reported Sunday.

Even though Trump’s Justice Department okayed the merger in June, a group of 12 Democratic state attorneys general filed a lawsuit in July to block it. They want a settlement that would ensure certain provisions, like preserving CNN’s editorial independence, and guaranteeing a fixed amount of  theatrical movie releases each year.

Chief media analyst Brian Stelter reported Sunday that James in New York, William Tong in Connecticut, and at least two other state attorneys general “have reservations” about the terms of the settlement. His story came one day after Status journalist Jon Passantino was the first to report NY and Connecticut were “pushing back” on the settlement.

“There’s a lot of political overtones to all of this because Paramount has cultivated a close relationship with the Trump administration,” Stelter said. He added that Paramount CEO — and Trump friend — David Ellison has been pushing hard to strike a settlement deal so he can take control of CNN, HBO, Warner  Brothers-Discovery, and other assets as soon as possible.

And California Attorney General Rob Bonta (D), who led the blue states in filing suit to block the merger, is now said to be “pushing to get the deal done,” leading to “advanced talks” with Paramount.

“The Wall Street Journal was first to report on these advanced talks, and now we’re adding new details, reporting that Letitia James in New York and William Tong in Connecticut are both trying to get more out of Paramount,” Stelter reported. “And I’m told at least two other states also have reservations about any settlement deal right now.”

James has well-documented bad blood with the Trump administration. The DOJ is currently appealing to refile federal bank fraud and false statement charges against her after a judge dismissed them and two grand juries failed to re-indict her.

“For example, in Connecticut, William Tong, the AG there, a source telling me, quote, ‘He is fighting to preserve the Independence of CNN and CBS News,'” Stelter said. “Now, that’s an interesting comment coming from a source close to the matter. CBS News is owned by Paramount. There’s talk of a combination of [CNN] with CBS News if the deal goes through.”

Stelter continued:

There’s also been talk about a possible independent content monitor or other steps to ensure CNN’s independence. We don’t know the details about these confidential settlement negotiations, so, all we’re getting are crumbs from sources who are willing to share this on background, but clearly enough sources are talking that we know two things for sure: There are divisions between these states as they try to strike a settlement deal. And we know Paramount is trying hard to get this settlement deal done before October 1st. That’s because the deal starts to get more expensive for Paramount starting at the end of September. So, I expect we’re going to hear a lot more about this in the coming days.

Watch the clip above via CNN.

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