The deal is done as Paramount Skydance, and the coalition of twelve U.S. states, have reached a settlement over the former’s planned $111 billion acquisition of Warner Bros. Discovery.
The five-year agreement, which remains subject to court approval and resolves an antitrust lawsuit filed in July, effectively removes the last remaining major obstacle to the merger.
Under the deal, Paramount’s previously announced commitment to releasing at least 30 films annually now comes with a penalty – $30 million for each missing film towards the healthcare and retirement plans for the major Hollywood guilds.
Additionally, at least four films each year must come from independent producers and the minimum number rises to 32 films by the third year. At least 20 (and later 21) of the films must be wide releases, and at least 20% must have budgets over $50 million.
There’s also a guaranteed 45-day theatrical window, with no SVOD window until at least 90 days. In addition, Paramount has to divest itself of its stake in Miramax and operations in California will stay – they cannot sell the Paramount or Warner Bros. studio lots.
Paramount must also spend at least an additional $1.5 billion on U.S. film production over five years, establish a $47.5 million fund for training and career assistance to merger-displaced workers, and spend at least $25 million towards acquiring independent films.
Paramount and Warner Bros. cable networks also have to negotiate carriage agreements separately for five years, and free streamer Pluto TV must be maintained.
As for the concerns over news coverage, an independent editorial board will additionally oversee CBS News and CNN to protect the editorial independence of both news organisations.
Additionally, an independent monitor will oversee Paramount’s compliance with the settlement.
In a statement, California Attorney General Rob Bonta has made it clear this settlement is NOT an endorsement of the merger.
Source: THR
