Paramount Skydance settled its lawsuit with California and other states that attempted to block its acquisition of Warner Bros Discovery. The deal allows the companies to move forward with the transaction.
Paramount CEO David Ellison said in a statement obtained by Deadline, “With both groups’ concerns now addressed, we have complete clearance for this merger and can move toward closing. There’s still work ahead to get this deal across the finish line, but we’re excited to bring these two iconic companies together, as it means more opportunity for our creatives, production crews and employees across the business, and more great entertainment for audiences everywhere.”
Ellison added that the development is “an exciting moment for our company and our industry.”
California Attorney General Rob Bonta said the agreement “resolves our antitrust concerns in every market alleged in our case, protects competition and consumer choice, and puts workers’ needs, concerns, and futures first, is the best course of action.” He explained the settlement “provides court-enforceable commitments for more films, an infusion of an additional $1.5 billion into home-grown film production, and protections for workers who are impacted by the merger.”
According to The New York Post, the main factor in the agreement was New York Attorney General Letitia James, who “represents thousands of New Yorkers who work for Paramount and Warner Bros,” the report noted.
Under the agreement, the merged company will put out 30 films a year in the first two years of the five-year plan. In years three, four, and five, the company will create 32 films. Paramount will also release at least four independent films in each year of the commitment period. Should it fail to meet these requirements, the company will “divest Miramax Studios and must pay $30 million per missed film,” Bonta’s office said.
