Paramount Skydance (PKSY) is optimistic that there will be a settlement with the AG, and that the hardline stance of no talks is a bargaining ploy, according to Fox's Gasparino

Second-hand sourcing of this kind, a reporter relaying company optimism about a settlement with the Attorney General, sits at the softer end of deal-risk information flow; the market has tended to fade or reprice on confirmation rather than on the framing. The pattern in contested mergers under regulatory or state AG scrutiny is that public hardline postures frequently precede negotiated resolutions, with the tell being whether talks are actually scheduled rather than what either side says about them. The distinction worth drawing is between a settlement that preserves the transaction's economics and one that extracts remedies (divestitures, conditions, consent decrees) which alter the merged entity's value; the merger arb spread has historically compressed sharply on the former and widened on ambiguity about the latter. The actor track record matters here: the reporting source has a history of well-connected deal scoops that have sometimes moved quickly and sometimes been walked back. The follow-ons are any on-record statement from the AG's office, court filings in any related litigation, and movement in the deal spread and option skew in the target's names. Until something citable lands, this is sentiment management by the acquiring side.