California Attorney General Rob Bonta announced a settlement with Paramount in a lawsuit his state led challenging the company's acquisition of Warner Bros. Discovery on Monday, effectively paving the way for the mega merger to move forward, with some new commitments.
The $81 billion blockbuster deal will bring together two of Hollywood’s oldest studios, key TV networks like CBS and CNN and streaming platforms HBO Max and Paramount+, as well as decades of libraries with titles ranging from “Harry Potter” to “Top Gun.”
But terms of Monday’s agreement include what Bonta called “court enforceable” requirements for Skydance-owned Paramount to increase domestic production and establish monitoring of editorial independence of the company's news operations.
Nevada Attorney General Aaron D. Ford says, "This agreement will ensure our film and television industries are protected and that consumers do not feel the impact of this merger both at home and at the box office,” said Attorney General Ford. “This outcome ensures Paramount will continue to invest in domestic film production and imposes penalties that would support the country’s movie industry should they fail to do so. I am proud to work alongside state attorneys general who stand up to take necessary action when the federal government abandons its responsibilities.”
The settlement still needs final court approval. Bonta maintained that Monday's agreement “is not a vote of support for this merger" — but that he was always willing to come to the table and “find a strong solution that protects competition and consumers.”
In securing this settlement, Nevada Attorney General Ford joins the attorneys general of California, Arizona, Colorado, Connecticut, Massachusetts, Minnesota, New Jersey, New Mexico, New York, Oregon and Washington.
(The Associated Press contributed to this report.)
