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[BUSINESS] · United States · 36 sources

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Paramount Skydance settles antitrust lawsuits to clear Warner Bros. Discovery merger

Paramount Skydance has reached a settlement with a coalition of 12 U.S. states, led by California Attorney General Rob Bonta, and the Writers Guild of America, clearing a major legal hurdle for its $110 billion acquisition of Warner Bros. Discovery. The deal, which remains subject to court approval, aims to address antitrust concerns regarding market competition and content diversity.

As part of the agreement, Paramount has committed to several operational mandates. The company must release at least 30 films annually for the first two years, increasing to 32 films per year for the following three years. It must also invest at least $1.5 billion in additional U.S. film production over five years. Failure to meet these film release targets could result in a $30 million penalty per film and the potential divestiture of its 49% stake in Miramax.

The settlement also includes protections for news integrity and labor. Paramount will establish an editorial independence board, composed of five veteran journalists, to oversee CNN and CBS News. Additionally, Paramount has agreed to pay $17.5 million to the WGA health fund and has committed to prohibiting writer layoffs at CBS News for five years.

Analysts suggest the merged entity, which will control major assets like HBO, Paramount+, and various iconic franchises, could reach over 240 million streaming subscribers by 2030, positioning it to compete directly with Netflix, Disney, and Amazon.

Entities

David Ellison · Morgan Stanley · Paramount · Paramount Global · Paramount Skydance · Rob Bonta · Skydance · Skydance Media · Warner Bros. Discovery · Writers Guild of America

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