dailynewsnblog
Listen to this article
Estimated 3 minutes
The audio version of this article is generated by AI-based technology. Mispronunciations can occur. We are working with our partners to continually review and improve the results.
California Attorney General Rob Bonta announced Monday a settlement with Paramount in a lawsuit his state led challenging the company’s acquisition of Warner Bros. Discovery, effectively paving the way for the megamerger to move forward, with some new commitments.
The $81 billion US blockbuster deal will bring together two of Hollywood’s oldest studios, key TV networks such as CBS and CNN and streaming platforms HBO Max and Paramount+, as well as decades of libraries with titles ranging from Harry Potter to Top Gun.
But terms of Monday’s agreement include what Bonta called “court enforceable” requirements for Skydance-owned Paramount to increase domestic production and establish monitoring of editorial independence of the company’s news operations.
The settlement still needs final court approval. Bonta maintained that Monday’s agreement “is not a vote of support for this merger” — but that he was always willing to come to the table and “find a strong solution that protects competition and consumers.”
Skydance-owned Paramount reached the settlement Monday with a group of state attorneys general that had sued to challenge the company’s buyout of Warner Bros. Discovery, effectively paving the way for the megamerger to move forward, a person familiar with the matter told the The Associated Press.
The person was not authorized to speak publicly and did so on condition of anonymity. Details of the settlement with the states were not immediately available but were expected to be revealed later in the day.
The coalition of states — including entertainment heavyweights such as California and New York — sued to block the $81 billion US merger in July, alleging a Paramount-Warner combo would “extinguish competition” and lead to fewer choices for consumers, particularly movie theatre-goers and cable customers across the U.S.
Accompanied by a complaint also filed by the Writers Guild of America, the challenge was headed toward a full antitrust trial set to begin in March.
Paramount Skydance made a hostile takeover bid for Warner Bros. Discovery for $108 billion US just days after Netflix announced it made a $72-billion US deal with the legacy studio. It’s a move that even has U.S. President Donald Trump weighing in.
Paramount said the allegations were meritless, but previously agreed to delay its transaction well into next year so the case could make its way through court. It then quickly called for a settlement, arguing that it had satisfied all regulatory clearances worldwide — including from the Trump administration’s Justice Department — and the states’ challenge was its “final obstacle.”
As reports of the states reaching a settlement with Paramount emerged Monday, critics decried the deal while warning of what further consolidation could mean in an industry already controlled by just a few major players.
“Today, billionaires have yet again bribed, censored, and bullied their way to the top,” Alvaro Bedoya, senior adviser at the American Economic Liberties Project and former FTC commissioner, said in a statement earlier Monday. “Layoffs will follow. People from L.A. to Atlanta will lose their jobs, small businesses will lose their contracts, your cable bill and movie ticket will be even more expensive.”
