Paramount settles lawsuit with US states, clearing way for $110bn merger with Warner Bros
Paramount Skydance has settled a lawsuit with a dozen US states, paving the way for its $110bn (£82.8bn) merger with Warner Bros Discovery. Under the agreement, Paramount must produce at least 30 films a year and ensure a certain percentage are produced in the US, or face penalties including selling off parts of its business. […] The post Paramount settles lawsuit with US states, clearing way for…
Paramount Skydance has reached a settlement with 12 US states, clearing the path for its $110bn merger with Warner Bros Discovery. As part of the agreement, Paramount must produce a minimum of 30 films annually, with a certain percentage being made in the United States. Failure to meet this quota could result in penalties, including the sale of a 49% stake in its Miramax business unit.
California Attorney General Rob Bonta expressed that the settlement does not indicate support for the merger, while Paramount CEO David Ellison welcomed the resolution. The Writers Guild of America (WGA) stated it still believed the deal would harm writers and the industry. The WGA had to settle its lawsuit due to limited resources, as a non-profit organization.
Paramount will pay $17.5m into the WGA health fund and cover legal fees, preventing writer layoffs at CBS News Broadcast for five years. The settlement aims to boost film production in the US, with strict guardrails against AI-generated films. If Paramount fails to meet its annual production quota, it must sell its Miramax stake.
While Ellison initially hinted at moving the studio headquarters out of California, the deal does not guarantee the location. An independent monitor will oversee ongoing compliance with the settlement.
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