Paramount, attorneys general settle lawsuit, clearing a path for Warner Bros. merger
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Set us as preferred California Atty.General Rob Bonta and Paramount Skydance Chief Executive David Ellison have reached an agreement to end the state’s antitrust fight, paving the way for Ellison to complete his $111-billion purchase of Warner Bros.
Discovery, said a person familiar with the matter.The two sides have agreed to resolve antitrust claims that Bonta and 11 other state attorneys general brought in late July, said the source, who was not authorized to comment publicly on the settlement.As part of the deal, Paramount agreed to pay a penalty if the company fails to make good on a promise to distribute 30 films per year in theaters and to spend $1.5 billion on film production in Hollywood over the next five years, said the source who was not authorized to comment.Representatives of Paramount and Bonta did not respond to a request for comment.A federal judge must approve the agreement.Paramount would then be poised to quickly finalize its purchase of Warner Bros.
Discovery — a blockbuster combination that will reshape Hollywood by collapsing two historic film studios with rights to Batman, Harry Potter, “Top Gun,” and Bugs Bunny and by combining the HBO Max and Paramount+ streaming services.In addition to CBS, Paramount would own dozens of cable television channels, including CNN, TBS, HGTV, Food Network and Comedy Central.Hollywood Inc.
Critics of the $111-billion Paramount acquisition of Warner Bros.urged California Atty.
Gen.Bonta and other state attorneys general to disregard pressure to reach a settlement.The road to a resolution was fraught.
Bonta abruptly canceled a negotiation session with Paramount in late August after potential deal terms leaked.Then, after talks restarted and the settlement began taking shape, several powerful Bonta allies, including New York Atty.
Gen.Letitia James and Connec...