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Paramount Settles State Antitrust Case Clearing Obstacle to W.B. Deal
Variety • • business
Key Points:
- Paramount has reached a settlement with 12 state attorneys general, led by California's Rob Bonta, resolving an antitrust lawsuit that had blocked its $111 billion acquisition of Warner Bros. Discovery.
- The deal, which avoids major divestitures, addresses concerns about Paramount's commitments to remain in California, production levels, and editorial oversight of CBS News and CNN, with an official announcement expected soon.
- The merger was previously stalled with a trial set for March 2027 and a looming $7 million daily "ticking fee" starting October 1, but the settlement removes this obstacle and is expected to include the Writers Guild of America.
- Opponents, including the American Economic Liberties Project, criticized the settlement as a capitulation to corporate pressure, warning it could harm competition and the broader entertainment industry.
- Paramount had increased pressure on regulators by threatening to relocate operations out of California and gained support from major theater chains and industry unions, influencing the shift toward settlement.
