Paramount Clears Major Legal Hurdle in $110 Billion Warner Bros Deal

Paramount Skydance has reached settlements with a coalition of 12 US states and the Writers Guild of America, removing a major legal obstacle to its proposed acquisition of Warner Bros Discovery. The transaction, valued at about $110 billion including debt, still requires final judicial approval.

Under the settlement, Paramount has committed to spend an additional $300 million annually on US film production for five years and release at least 30 films in each of the first two years and 32 annually for the following three. At least four films each year must be independent productions. The company could face a $30 million penalty for every missed production target, with some funds directed toward industry worker programmes.

Paramount will also create an editorial independence board covering CBS and CNN and negotiate certain cable channel agreements separately for five years. The settlement does not require the company to sell CNN, other cable networks or major film franchises.

The Writers Guild of America separately settled its lawsuit, which had argued that the merger could negatively affect writers’ pay and working conditions. The union said it continued to have concerns about the deal but chose to end the litigation.

The state lawsuit had alleged that the merger could reduce competition in film and television. Federal and several international regulators had already cleared the transaction. The settlement also helps Paramount avoid a $7 million-per-day payment that would have applied if the deal remained unresolved beyond September 30.

Published: 1h ago

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