Paramount is preparing to meet Monday with California officials with the aim of starting talks to potentially resolve the antitrust lawsuit that stands in the way of the company's $81-billion deal to acquire rival Warner Bros. Discovery, according to people familiar with the matter.

A dozen Democratic-led states led by California Attorney General Rob Bonta sued in July to block the deal on antitrust grounds, arguing that the combination of Paramount and Warner would create too much concentration in the markets for theatrical films and cable television channels.

There has been increasing pressure on Bonta to engage in settlement talks with Paramount, with California Governor Gavin Newsom, Los Angeles Mayor Karen Bass and others weighing in recently. Newsom said at a Friday press conference he was aware of "many meetings going on and there are a lot of conversations about what that could look like."

Bonta said in a statement Friday that he prefers to "resolve disputes in the boardroom, not the courtroom" and that "any potential discussions about the Paramount-Warner Brothers merger will be unproductive absent robust structural remedies on the table that address our concerns."

"As it stands today, the proposed Warner Bros./Paramount merger will mean higher costs, less competition, lower wages, job cuts, and fewer movies and TV shows," Bonta said.

Paramount leaders are eager to close the deal, which would dramatically reshape the entertainment industry, uniting two of the movie business' oldest studios, two major streaming services in Paramount+ and HBO Max and dozens of television networks.

The combination would give Paramount Chief Executive David Ellison control of franchises including DC superheroes and Harry Potter, as well as adding CNN, Cartoon Network and Food Network to a portfolio that already includes MTV, Comedy Central and the CBS broadcast network.

Paramount has warned it is prepared to move the company out of California if it can't reach a deal with the states, with a potential move starting as soon as Oct. 1. Tennessee is seen as a likely potential landing spot for Paramount.

The Writers Guild of America also sued over the merger, saying that the deal would eliminate jobs and career opportunities for Hollywood screenwriters.

Last week Paramount asked a federal judge to require the states and the Writers Guild to put up a nearly $1.9 billion bond for challenging the acquisition, money that would go to the company if it ultimately wins the case.

In recent days, major theater chains have encouraged settlement talks. The Directors Guild of America and the International Alliance of Theatrical Stage Employees, which represents below-the-line workers on film and TV sets, have also urged the company and the states to resolve the dispute.

Paramount has said its proposed deal is pro-competition and will benefit consumers. Paramount, the company has said, needs to increase its size to better compete against rivals Netflix, Amazon's Prime Video and Disney.

The U.K. government approved the deal in August, following the European Union, the U.S. Justice Department and regulatory bodies in dozens of other countries.

Ellison has publicly made the case that states' true objection to the deal isn't about antitrust issues at all, but about politics and the future of CNN. Ellison's father, billionaire Oracle cofounder Larry Ellison, is friendly with the Trump administration.

U.S. District Judge Araceli Martínez-Olguín in August said that the antitrust trial would begin March 2, much later than Paramount executives wanted. The trial is scheduled to last 12 court days.

Paramount's agreement with Warner included a "ticking fee" with payments to Warner shareholders of roughly $650 million a quarter, beginning this October, until the transaction closes. If the trial goes on as scheduled, Paramount could be on the hook for more than $1 billion in ticking fees.