Paramount discusses $1.5bn California pledge to clear merger- WSJ
Paramount and California's attorney general have discussed potential concessions in settlement negotiations, according to the Wall Street Journal. These talks may include a $1.5 billion investment by Paramount in production within California, as well as a commitment to maintain operations in the state. The potential merger between Paramount and Warner Bros.
Discovery is facing opposition from a coalition of states and Paramount executives. The agreement would combine HBO, CBS, CNN, streaming services and film studios under single ownership. In addition to the production investment, parties discuss additional concessions, such as a pledge not to sell either studio lot. If Paramount fails to fulfill its earlier commitment to produce 30 movies annually following the merger, it may face penalties.
One proposed penalty includes requiring the company to divest its stake in Miramax. Bloomberg reported potential penalties of up to $30 million for each movie not released under Paramount's earlier commitment.
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