The proposed Paramount Skydance acquisition of Warner Bros. Discovery has hit another roadblock after California Attorney General Rob Bonta canceled a scheduled meeting (on Monday) with the company's representatives that was expected to begin settlement discussions. The meeting was intended to explore whether California's lawsuit against the blockbuster merger could be resolved without a prolonged court battle.For the uninitiated, the David Ellison-led company is attempting to complete its planned $111B acquisition of Warner Bros., which would combine two of Hollywood's biggest entertainment companies and bring major film, television and streaming assets together.More on this in our story.Why did Rob Bonta cancel the Paramount settlement meeting?California is among the 12 states challenging the acquisition on antitrust grounds, arguing that this corporate marriage would create an illegal market concentration, leading to a monopoly, raising pay-TV prices and crushing workers' wages.According to a Deadline report, the highly anticipated court-mandated settlement meeting between Paramount and Bonta was scrapped late Sunday night after the latter accused the company of leaking the substance of preliminary discussions that occurred on August 21.Check out California AG Rob Bonta's reasons for canceling the meeting, via a statement to Deadline:“Not only did Paramount leak the alleged substance of settlement discussions, but they misrepresented these discussions, demonstrating a lack of good faith. As soon as they stops playing games and engages sincerely, my office is happy to meet again.”The scrapped settlement meeting was highly-anticipated after representatives of the 12 state AGs who challenged the proposed merger demanded CEO Ellison sell Warner Bros.' still lucrative cable channel stable.The cancellation of the settlement meeting turns up the heat on the Ellison-led company, creating severe financial pressure, legal hurdles and internal strain.More details on the proposed mergerThe Warner Bros. board of directors put the company up for auction in October 2025 to maximize shareholder value, leading to a months-long corporate battle among Netflix, Starz, Comcast and the Ellison-led company.While a Netflix-Warner Bros. deal was finalized in December 2025, valued at $82.7 billion, the Ellison-led company entered into re-negotiations after submitting a rival all-cash tender. Paramount's revised offer at $31 per share was eventually deemed superior, forcing Netflix to withdraw from the takeover and Warner Bros.' shareholders approved the merger with the Ellison-led company in April 2026. The merger awaits confirmation from regulatory agencies within the United States and around the world.In addition to immense financial pressure and the scrapped settlement meeting, the Ellison-led company will likely divert all its resources to fight the 12-state antitrust lawsuit. The AGs and Paramount-Warner Bros. are scheduled to go on trial in March 2027 before a federal judge. The company's loss in the trial will lead to a complete collapse of the deal, triggering a catastrophic reverse break-up fee that Paramount would owe to Warner Bros. Discovery.For the latest scoops on your favorite TV shows and movies, follow SoapCentral.