- Paramount Skydance has reached a settlement with California and other states suing to block its $110 billion merger with Warner Bros Discovery, as reported by Bloomberg News on Monday.
- Following the Bloomberg report, shares of Warner Bros Discovery rose nearly 10%, while Paramount pared some gains and was last trading about 7% higher.
- Settlement talks concluded over the weekend after four states that had opposed terms of a deal outlined with California conceded, and the settlement is expected to be announced later today.
- Bloomberg reported on Monday that the states succeeded in securing independent editorial boards for CBS and CNN as part of the settlement with Paramount.
- A coalition of 12 state attorneys general, led by California's Rob Bonta, sued in July to block the merger, arguing it would reduce competition in theatrical film distribution and the licensing of basic cable channels.
- The settlement would remove a major obstacle to closing one of the largest media mergers in history, uniting two of Hollywood's biggest film studios, two major streaming services, and two of the largest cable-news operations under a single owner.
- The settlement helps Paramount avoid a $7 million daily fee it owes Warner Bros shareholders for each day the deal does not close past September 30.
- Antitrust regulators in other jurisdictions, including the European Union and Britain, have already cleared the acquisition.
Paramount's settlement with California and other states removes a significant hurdle for its $110 billion merger with Warner Bros Discovery, allowing the unification of two major film studios and streaming services. The agreement, reported by Bloomberg, was reached after four states conceded during negotiations over the weekend.1
The settlement is expected to be formally announced soon and is crucial for Paramount to avoid a $7 million daily fee owed to Warner Bros shareholders for delays past September 30. The merger is one of the largest in media history, combining significant assets in film and cable news.9
As part of the settlement, Paramount has committed to a $1.5 billion investment in production in California, a pledge to produce 30 movies a year, and measures to ensure editorial independence for CBS and CNN. The coalition of 12 state attorneys general, led by California's Rob Bonta, initially sued in July, citing concerns over reduced competition in theatrical distribution and cable licensing.7
Antitrust regulators in the European Union and Britain have already approved the acquisition, paving the way for a transformative shift in the media landscape. Following the news, shares of Warner Bros Discovery rose nearly 10%, while Paramount's shares increased by about 7%.10
“The settlement includes independent editorial boards for CBS and CNN, a $1.5 billion production investment in California, and penalties if Paramount fails to produce 30 movies a year. It also helps Paramount avoid a $7 million daily fee owed to Warner Bros shareholders if the deal doesn't close by September 30.”
