Paramount Secures Warner Bros Merger After State and Union Settlements
Paramount reached a settlement with U.S. states and the Writers Guild, allowing its acquisition of Warner Bros while agreeing to film production quotas, a news editorial board and financial penalties for non-compliance.
Paramount Pictures has finalized its acquisition of Warner Bros after reaching settlements with a coalition of state attorneys general and the Writers Guild of America. The agreements require Paramount to increase domestic film production by at least $300 million annually and to meet theatrical release quotas for five years, producing 30 movies in each of the first two years and 32 in each of the next three years. At least four of the yearly releases must be independent films and a minimum of 20 % must be blockbusters; failure to meet the quota would trigger a $30 million penalty per shortfall, directed largely to worker-support funds.
The company also pledged not to raise rates on theater operators for three years and will establish an editorial independence board for the CBS and CNN news outlets. California Attorney General Rob Bonta described the settlement as “a strong antitrust outcome,” adding that the deal provides “more production, more choice, and guardrails that keep this industry competitive.”
Paramount CEO David Ellison thanked California Governor Gavin Newsom and the states for their support, stating that the goal is “to build a stronger Hollywood — one with more stories told, greater choice for consumers and stronger competition.” The settlement averts a potential daily penalty of $7 million that would have been imposed for each day the merger remained incomplete past the September 30 deadline. Antitrust regulators in the European Union and Britain have already cleared the transaction.