Paramount reaches US$110b deal with US states, clearing path to Warner takeover

Paramount has reached a monumental agreement with several US states, clearing the way for its anticipated takeover of Warner Brothers, according to the German Press Agency (dpa). The deal, valued at over US$110 billion, has been legally blocked by the states, which argued that the merger would concentrate economic power and harm Hollywood and the cinema industry.

Paramount's agreement with these states stipulates that the merged group will invest more money in the US and Hollywood. California's Attorney General, Rob Bonta, confirmed that the new editorial oversight board for CNN and CBS News' news channel aims to safeguard their independence. Paramount has also reaffirmed its commitment to releasing a combined total of 30 films a year in cinemas within the first two years of the merger.

The screenwriters' union has dropped its lawsuit against the Warner takeover following this agreement, and Paramount has pledged to contribute US$17.5 million to a healthcare fund for the writers. The states' antitrust lawsuit claimed that Paramount's dominance would harm Hollywood and cinema businesses. Earlier this year, Paramount was taken over by the family of tech billionaire Larry Ellison, who is reportedly a Trump supporter. CNN, owned by Warner, has been a frequent critic of US President Donald Trump.