Paramount plans to settle US states’ lawsuit over WBD deal — CNBC
In the United States, Paramount Skydance plans to settle an antitrust lawsuit brought by a group of state attorneys general that sought to block the company’s proposed $110 billion merger with Warner Bros. Discovery. According to CNBC, several media outlets reported this; the settlement is expected to allow the deal to move forward.
The lawsuit could have delayed the deal
The lawsuit was led by California Attorney General Rob Bonta. A trial in the case was scheduled for March, and the legal challenge could have left the deal in limbo until mid-2027.
In mid-July, California and 11 other states filed a lawsuit seeking to block the merger, citing antitrust concerns in film production and pay television. Paramount subsequently agreed to delay the completion of the deal until June 2027 for the duration of the legal proceedings.
Likely terms of the agreement
The details of the agreement have not been publicly disclosed. However, Reuters sources said that the settlement provides for the creation of independent editorial boards for CNN and CBS. According to these sources, Paramount will also pay $30 million for each film if it fails to meet its commitment to release 30 films annually.
More current news is available on the UA.News Telegram channel Telegram.
Representatives of Paramount and Bonta did not immediately comment on reports of the settlement. The deal had previously been approved by regulators in the United States and other countries, while Paramount told investors that it expected to complete it by September 30.
The cost of a possible delay
A postponement could have increased Paramount’s costs. The merger agreement provides for an additional payment to Warner Bros. Discovery shareholders: after September 30, it was to amount to 25 cents per share for each quarter until the transaction was completed. CNBC estimated that this would add about $650 million to the cash value of the deal each quarter.
Following the merger, the entity is to include Paramount and Warner Bros. Discovery film studios, a portfolio of television networks, broadcaster CBS, as well as the Paramount+ and HBO Max streaming services.
