Paramount Weighs Some Concessions in Bid to Finalize Warner Bros. Merger

Paramount is in active talks to settle a lawsuit seeking to block its purchase of Warner Bros.Discovery, as it tries to avoid a costly fee triggered by delays in completing the deal, according to seven people with knowledge of the discussions.A settlement would clear the way for a $111 billion acquisition that could transform Hollywood, resulting in a media and entertainment behemoth with control of two movie studios, the major news outlets CBS News and CNN and the streaming services HBO Max and Paramount+.In talks with the 12 states that brought the lawsuit, led by California, the two sides have discussed measures to protect the editorial independence of CNN, said five of the people familiar with the discussions.

They have also talked about the divestiture of some cable channels, including Comedy Central, according to two of the people.The negotiations come as Paramount stares down a deadline that will make its purchase of the rival entertainment conglomerate more expensive.A provision written into the $111 billion deal requires Paramount to pay shareholders of Warner Bros.

Discovery about $7 million per day beginning on Oct.1 if the deal hasn’t closed by then.A spokeswoman for Rob Bonta, California’s Democratic attorney general, said his office could not “confirm or deny whether settlement talks are occurring or their alleged substance.” A spokeswoman for Paramount declined to comment.The Wall Street Journal earlier reported that Paramount and the state attorneys general were making progress toward a deal.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access.

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