Representatives from Paramount and Skydance are scheduled to meet with the California Attorney General's office on Monday to discuss a potential resolution to the multi-state antitrust lawsuit, according to two individuals with knowledge of the matter.

Paramount has been actively pushing for a settlement in order to complete its $111 billion merger with Warner Bros. Discovery. The transaction is currently on hold, pending a trial scheduled for March in federal court in Oakland.

California Attorney General Rob Bonta has indicated a willingness to engage in settlement discussions, but has also stated that Paramount has so far been unwilling to offer the structural remedies needed to address the states' concerns. A spokesperson for Paramount declined to comment.

In July, Bonta led a coalition of 12 states in filing a lawsuit against the merger, arguing that the deal would illegally constrain the theatrical distribution and basic cable market space. This merger would combine two of Hollywood's five major traditional studios, as well as two of the three leading cable television content producers.

Under federal procedural rules, both parties must attempt to settle the case before a magistrate judge at a certain point. During this week's hearing, Judge Araceli Martinez-Olguin ordered both sides to nominate two magistrate judges who could oversee mediation by next Wednesday.

Several stakeholders have recently voiced support for a settlement, including the Directors Guild of America, the International Alliance of Theatrical Stage Employees, Los Angeles Mayor Karen Bass, and the Cinema United industry group representing theater chains.

"Earlier this week, the Attorney General himself stated a preference for resolving this dispute in the boardroom rather than the courtroom," California Governor Gavin Newsom said Friday. "If that can be achieved, I believe that is largely the sentiment across the board. The question is whether a settlement is viable and what the optimal solution looks like. These matters require negotiation. I can assure you, the process is moving forward in real time."

Paramount has made several commitments to facilitate the deal, including producing 30 films annually for the next three years and guaranteeing these films will have a theatrical-exclusive window of at least 45 days. However, Bonta's office believes that past experience shows such behavioral remedies are difficult to enforce.

The Writers Guild of America has also filed a separate lawsuit, which will be tried alongside the states' case in March. The union has also agreed to pause the merger until trial; if the parties hope to reach a comprehensive solution, the Writers Guild must also be included. A spokesperson for the Writers Guild did not respond to a request for comment.