Paramount Skydance has reportedly settled with California and other states after a lawsuit filed earlier this year tried to block its proposed merger with Warner Bros. Discovery Inc.
Bloomberg News and multiple other outlets reported on the latest development on Monday, Sept. 21, citing a person “familiar with the matter.”
California Attorney General Rob Bonta, who filed the antitrust lawsuit along with 11 other attorneys general, has not publicly commented on the reported settlement reached as of Monday morning. His office and Paramount Skydance did not immediately respond to USA TODAY Network's request for confirmation of the settlement.
According to Reuters and Bloomberg News, the terms of the settlement include a financial penalty if the company
doesn’t distribute 30 films per year in theaters — Paramount CEO David Ellison previously committed to releasing at least 30 feature films annually with a 45-day theatrical release window for each movie following the acquisition.
The settlement also includes creating independent editorial boards for CNN and CBS, Reuters reports.
Bonta and the coalition of attorneys general challenged the $110 billion proposed merger in a lawsuit in July, describing it as creating a “media behemoth” if it were to be realized. The Writers Guild of America also sued to block the merger, saying it violates antitrust law and will harm writers.
Bonta said the merger would lead to “higher prices, lower quality and less content for film and television.” Such impacts would be felt by movie theaters, basic cable distributors and audiences nationwide, according to Bonta.
Paramount has previously said that the merger “creates a stronger competitor against dominant streaming and technology platforms that have harmed the market for theatrical exhibition and jobs in the entertainment industry.” It’ll be able to better compete with companies like Netflix, a Paramount spokesperson said.
The merger will create a company that can invest more aggressively in premium content, theatrical releases and creative talent, according to Paramount.
This is a breaking news story. Check back later for more details.
Paris Barraza is a reporter covering Los Angeles and Southern California for the USA TODAY Network. Reach her at pbarraza@usatodayco.com.
This article originally appeared on USA TODAY: Paramount, California reportedly settle in Warner Bros. merger fiasco
