Paramount settles with US states, clearing path for Warner Bros. merger
Also reported by The Hill, CBS News, BBC US, Al Jazeera, Guardian US
Summary
Paramount Pictures reached an agreement with California and 11 other states to allow its $110 billion acquisition of Warner Bros. Discovery to proceed. The deal includes promises on movie production, job protection, and editorial independence at news outlets like CNN.Key Facts
- Paramount agreed to produce at least 30 movies in each of the first two years after the merger, and 32 movies in each of the following three years, with specific requirements for independent and blockbuster films.
- The combined company must spend at least $300 million more annually on US film production compared to 2025 levels.
- A News Editorial Independence Board will oversee news channels such as CNN to protect their editorial freedom.
- The deal was initially approved by the Trump administration but was challenged by 12 states including California over concerns about market control and job losses.
- Paramount threatened to leave California if the state did not settle its lawsuit opposing the merger.
- Financing for the deal includes $24 billion from Saudi Arabia, Qatar, and Abu Dhabi sovereign funds, with support from Larry Ellison, founder of Oracle.
- The merger will create a large media company controlling a significant share of theatrical film distribution and basic cable channels in the US.
- The settlement requires honoring labor agreements and investing in workforce training at the studios.
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