Paramount, State AGs Brush Off Warner Bros. Merger Settlement Concerns, Say Deal Is ‘Reasonable Compromise’ Negotiated at ‘Arm’s Length’
The comments come in response to criticism outlined in a letter from Sen. Corey Booker The post Paramount, State AGs Brush Off Warner Bros. Merger Settlement Concerns, Say Deal Is ‘Reasonable Compromise’ Negotiated at ‘Arm’s Length’ appeared first on TheWrap .
Paramount and 12 state attorneys general have dismissed concerns from Senator Corey Booker and the Block the Merger coalition regarding their Warner Bros. Discovery merger settlement. In a court filing, the parties stated that the settlement was "vigorously negotiated at arm's length" and "reflects a reasonable compromise that addresses the competitive issues posed by the proposed merger."
They argued that an agreement's fairness should be assessed based on the risk of continued litigation, rather than an assumed permanent injunction not obtained by the state AGs. Paramount has committed to investing $300 million per year for five years in U.S. film and TV production, releasing at least 30 films per year theatrically and 32 films per year after that, with at least four independent films and 20% blockbusters.
The settlement also requires 20% of all film production to be in the U.S. for the first two years and 30% in the next three if Congress passes a federal film tax credit. Compliance with the settlement's commitments includes setting a 45-day theatrical window, maintaining a 90-day streaming ban, and operating free, ad-supported streaming platform Pluto TV.
Failure to meet these commitments can result in penalties, including forced divestitures of certain channels. The merger is expected to close in early October, subject to further closing conditions.
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