Paramount Settles State Antitrust Lawsuits to Clear Warner Bros. Acquisition
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A settlement with 12 states and the WGA removes the final major hurdle for the $110 billion media merger, prioritizing industry stability over divestiture.
Paramount has settled an antitrust lawsuit brought by 12 states, including California, New York, and Washington, clearing the path for its $110 billion acquisition of Warner Bros. Discovery. CNN reports the deal is now slated to close in early October.
Reporting from The Verge indicates the settlement includes strict production mandates: Paramount must commit to 30 theatrical releases in the first two years and 32 in subsequent years, with at least 20% being "tentpole" blockbusters. The company must also increase U.S. production spending by at least $300 million over 2025 levels. Failure to meet these targets would require Paramount to pay $30 million per missed film and divest Miramax Studios.
To address editorial concerns, the companies will establish a news editorial independence board comprising five experienced journalists to oversee CNN and CBS News. This follows pushback from Connecticut Attorney General William Tong, who told his office he was "deeply disappointed" that the settlement did not include the full divestiture of the news networks.
Politico reports that Governor Gavin Newsom and Los Angeles Mayor Karen Bass urged California Attorney General Rob Bonta to settle after Paramount considered leaving the state. The agreement also comes just before a "ticking fee" would have cost Paramount approximately $7 million per day starting September 30, as reported by The Verge.
Additionally, the Writers Guild of America (WGA) settled its own lawsuit. Per Engadget, the WGA will receive $17.5 million for its health fund and attorneys' fees, and Paramount has agreed to prohibit writer layoffs at CBS News Broadcast for five years. While the WGA noted its objections remain, it stated it cannot pursue a costly trial alone without government backing.
Paramount Chairman & CEO David Ellison stated the agreement serves consumers and the creative community, while Attorney General Bonta described the settlement as a way to protect competition and workers' needs.