David Ellison Says Paramount-WBD Merger Expected to Close in 2 Weeks

David Ellison, CEO of Paramount Pictures, announced in a staff memo on Monday that the $110 billion merger between Paramount and Warner Bros. Discovery is expected to close in approximately two weeks. This comes after the successful resolution of a lawsuit filed by 12 state attorneys general. The CEO expressed excitement about the merger, stating that it will provide more opportunities for creatives, production crews, and employees, as well as bring more great entertainment to audiences worldwide.

The agreement includes commitments such as producing at least 30 films annually and expanding U.S. film production, with a minimum investment of $300 million annually or $1.5 billion over five years. Paramount has agreed to produce 30 films per year for the first two years, increasing to 32 per year in the following three years, with a minimum of four independent films and 20% blockbusters annually.

At least 20% of all film production must be in the U.S. for the first two years and 30% in the next three, if Congress passes a federal film tax credit. However, California Attorney General Rob Bonta clarified that the settlement does not constitute a vote of support for the merger and emphasized the importance of continued efforts to address market consolidations and competition.

The merger faced opposition from various organizations, including the Block the Merger coalition, which expressed disappointment and anger over the deal. The Writers Guild of America (WGA) also reached a settlement with Paramount, acknowledging that the merger could negatively impact writers and the industry but lacking resources to continue its lawsuit due to lack of government backing.