“Our goal has always been to build a stronger Hollywood—one with more stories told, greater choice for consumers and stronger competition,” Ellison said in a press statement. “Bringing Paramount and Warner Bros. Discovery together will build that stronger Hollywood, creating expanded opportunity for our people and even more great entertainment for audiences around the world.”
Paramount has reached a settlement with a dozen state attorneys general. If approved, the agreement will likely pave the way for Paramount to proceed with a planned $81 billion merger with Warner Bros Discovery.
According to The Guardian, the merger was approved by the U.S. Department of Justice. However, shortly afterward, a coalition of twelve states sued over concerns that the deal would “extinguish competition” in Hollywood, leading to fewer movies in theaters and streaming platforms.
California Attorney General Rob Bonta, who led the multistate coalition, said in a news conference Monday that Paramount has made a legally-binding “commitment to significantly increase” production in the United States, specifically in and around Los Angeles. This, Bonta said, would mean “more jobs, more economic activity.”
“The settlement is not a vote of support for this merger,” Bonta said. “It’s not a blessing of the broader merger.
“Broadly speaking,” he said, “we believe further consolidation in markets that are essential to American economic life doesn’t serve the American economy, consumers, or competition well.”
Bloomberg notes that four of the plaintiff states—Connecticut, Massachusetts, Minnesota, and New York—refused to approve the settlement until this past weekend.
Under the terms of the agreement, which is still pending court approval, several networks—including CBS and CNN—will maintain independent editorial boards after the merger’s completion. Paramount also agreed to spend at least $300 million in domestic production and will be subject to heavy financial penalties if it fails to distribute 30 or more films for the first two years of the deal and 32 movies per year over the subsequent three.
In exchange for these concessions, Paramount will no longer be obligated to sell its cable channels, which include CBS, CNN, MTV, Nickelodeon, and Showtime.
Bonta said that all involved parties will work together to select a trustee, who will monitor Paramount’s compliance with the settlement and will have the authority to initiate legal proceedings if the company fails to meet its obligations.
Paramount CEO David Ellison, the son of billionaire Larry Ellison, said on Monday that he was grateful to Bonta, the other attorneys general, and California Gov. Gavin Newsom for “engaging in good faith to find a path forward to a resolution.” He also vowed that the merger will be “pro-competitive, pro-consumer, and pro-worker.”
“Our goal has always been to build a stronger Hollywood—one with more stories told, greater choice for consumers and stronger competition,” Ellison said in a press statement. “Bringing Paramount and Warner Bros. Discovery together will build that stronger Hollywood, creating expanded opportunity for our people and even more great entertainment for audiences around the world.”
While Bonta’s office and Paramount have both praised the deal, some media watchdogs have been more critical. The New York Times reports that the Free Press, an advocacy organization, has already accused the attorneys general of “capitulation.”
“Based on all reports, this weak deal contains nothing but unenforceable, empty Paramount promises,” Free Press co-chief executive Jessica J. Gonzalez said. “It will cut jobs and raise prices, all as it consolidates the media even more to enable authoritarians.”
Sources
Paramount settles lawsuits with 12 US states, clearing way for Warner merger
Paramount Settles States’ Lawsuit, Clearing Way for Warner Bros. Merger
State attorneys general agree to settle Paramount merger lawsuit
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