The office of California attorney general Rob Bonta has announced Paramount Skydance has settled the joint lawsuit filed by him and 11 other states over its acquisition of Warner Bros. Discovery. Per Variety, the Writers Guild of America has also settled its lawsuit over the merger, paving the way for it to be finalized soon.
Terms of the settlement include but are not limited to an independent editorial board for CNN and CBS News, and promising to release 30 films a year (including 20 wide releases, and four indies) in the first two years after the merger. Failure to fulfill the latter will result in requiring them to divest from Miramax (producers of the Scary Movie series and more), and pay $30 million per unproduced film to the WGA, IATSE (International Alliance of Theatrical Stage Employees), DGA (Directors Guild of America), IBT (International Brotherhood of Teamsters) and other unions, as well as NAAG (National Association of Attorneys General).
Bonta stated, “We have secured a settlement that resolves our antitrust concerns of the Warner Bros./Paramount merger — concerns that the merger will lower output and increase prices — by guaranteeing massive investment in domestic film production and providing enforceable guardrails to help keep cable prices competitive. Let me be clear: This settlement is not a vote of support for this merger. But we believe this settlement, which resolves our antitrust concerns in every market alleged in our case, protects competition and consumer choice, and puts workers’ needs, concerns, and futures first, is the best course of action.”
The WGA took a less optimistic tone in its statement, noting, “We continue to believe the merger will cause damage to writers and the industry at large. Now that the Attorneys General have settled with Paramount, however, as a nonprofit, the WGA must contend with the reality of forging ahead alone, with no backing from government enforcers, with a complex antitrust lawsuit that would cost millions of dollars to pursue through trial.” It adds, “We will continue to fight the harms of industry consolidation.”
Actor Mark Ruffalo, who has emerged as one of the most vocal opponents of the deal, commented California governor Gavin Newsom “hand[ed]” a “huge win to [Donald] Trump and his billionaire cronies.” Ruffalo has noted Larry Ellison (the father of Paramount CEO David Ellison)’s ties to the Israeli military, and incidentally, the merger will result in other problematic Middle Eastern states like Saudi Arabia owning nearly 50 percent of the final company.
You can read the PDF of the full settlement with the state attorneys here.
