Multiple reports from Bloomberg, Reuters and others indicate that Paramount has struck a deal with California State Attorney General Rob Bonta and other state attorneys general to settle their antitrust lawsuit against Paramount Skydance’s $111 billion takeover bid for Warner Bros. Discovery
The settlement, if completed, would stave off a antitrust trial in 2027 and pave the way for the deal to be quickly completed. On Sept. 17, the FCC’s Media Bureau approved foreign ownership waivers that were the last major regulatory hurdle.
Details of the settlement have not been made public but Bloomberg reported that the settlement would create an independent editorial board to oversee CNN and CBS. It also sets output levels for the combined studios’ movie production.
Bloomberg did not report any divestitures of the merged companies’ cable channel portfolio.
The potential deal was quickly criticized by some opponents of the merger, who argued that the concessions were “minor,” “largely unenforceable” and “in some cases promise less than the two companies are already doing as standalone competitors.”
In a statement, Free Press Co-CEO Jessica J. González said “[w]e are disappointed that Attorney General Bonta went back on his promise to enforce the law and protect consumers and workers…Based on all reports, this weak deal contains nothing but unenforceable, empty Paramount promises. It abandons the thousands of creatives and workers who risked speaking out, and the tens of millions of consumers the attorneys general should be fighting for.”
Over the weekend, some prominent Democrats also came out against any settlement with Paramount.
The settlement would still need to be approved by the judge in the case and would likely face opposition from critics.
