Paramount settles with states over merger with Warner Bros Discovery
Paramount Global has reached a settlement with California and other states that had sued to block its $81 billion merger with Warner Bros Discovery (WBD). The deal clears the way for consolidation of major Hollywood studios, despite concerns about reduced competition. As part of the agreement, Paramount committed to increasing domestic film production by at least 30 movies over five years and maintaining independent editorial boards for CBS and CNN under the merged entity. The settlement also includes a financial penalty if the new company fails to meet its output targets in the first two to three years post-merger. California Attorney General Rob Bonta emphasized that while he does not support broader consolidation, this agreement ensures more jobs and economic activity in Los Angeles. Four states initially held out but reportedly agreed on terms over the weekend. Paramount CEO David Ellison praised state officials for their cooperation and reiterated his belief that the merger will be pro-competitive and beneficial to consumers and workers.
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Topics: antitrust corporate_mergers media