Paramount, Bonta to Hammer Final Settlement Details on Thursday

Paramount CEO David Ellison and California Attorney General Rob Bonta are nearing a final settlement in a 12 state AGs' antitrust lawsuit against their $110 billion acquisition of Warner Bros. Discovery. A federal judge scheduled a hearing on Thursday to finalize the details of the agreement. The settlement, announced on Monday, mandates a minimum annual investment of $300 million in domestic TV and film production, or $1.5 billion over five years.

Paramount has committed to producing 30 films annually for the first two years, increasing to 32 per year in the following three years. At least four films per year must be independent, and 20% of all productions must be blockbusters. If Congress approves a federal film tax credit, 20% of film production must occur in the U.S. for the first two years and 30% in the subsequent three.

The combined entity must also establish an editorial board to oversee CNN and CBS News' independence, comprising five active or retired journalists with at least 10 years of journalism experience. Paramount and Warner Bros. Discovery must continue negotiating their cable packages separately for five years to maintain competition.

Restrictions on affiliate fee negotiations, distributor agreements, and confidential information usage are also in place. The agreement includes maintaining both companies' studio lots, honoring collective bargaining agreements, and committing $9.5 million per year for five years to workforce training and career development programs in film and television production.

Within 30 days of closing, a fund for purchasing independent films and an annual $5 million contribution will be established. The hearing, set for 11 a.m. PT, will be held on Zoom.