States Settle Paramount-Warner Bros. Lawsuit—Clearing Way For Merger To Go Through
State attorneys general have settled an antitrust lawsuit against Paramount, removing a major obstacle for its merger with Warner Bros. Discovery. The agreement requires the combined entity to produce 30 films annually; failure to meet this quota will force the divestiture of Miramax. David Ellison stated in a staff memo that Paramount intends to close the deal in approximately two weeks. While some sources value the transaction at 81 billion dollars, another reports it at 110 billion dollars.
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- ✓ State attorneys general agreed to settle the antitrust lawsuit regarding the Paramount-Warner Bros. merger.
- ✓ The settlement requires the company to produce 30 films per year.
- ✓ Paramount must divest Miramax if the annual 30-film production target is not met.
- ✓ David Ellison told staff in a memo that the deal should close in approximately two weeks.
What changed
State attorneys general reached a settlement that allows the merger to proceed subject to film production quotas.
Live updates
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US States Settle Antitrust Lawsuit Over Paramount-Warner Bros. Merger
State attorneys general have settled an antitrust lawsuit against Paramount, removing a major obstacle for its merger with Warner Bros. Discovery. The agreement requires the combined entity to produce 30 films annually; failure to meet this quota will force the divestiture of Miramax. David Ellison stated in a staff memo that Paramount intends to close the deal in approximately two weeks. While some sources value the transaction at 81 billion dollars, another reports it at 110 billion dollars.
Why it matters
The merger faced opposition from twelve states and Hollywood writers over competition and consumer protection concerns. California previously vowed to block the deal before folding due to political pressure and the risks of an antitrust trial.
What is confirmed
- State attorneys general agreed to settle the antitrust lawsuit regarding the Paramount-Warner Bros. merger.
- The settlement requires the company to produce 30 films per year.
- Paramount must divest Miramax if the annual 30-film production target is not met.
- David Ellison told staff in a memo that the deal should close in approximately two weeks.
Still unconfirmed
- The merger is valued at 81 billion dollars.
- The merger is valued at 110 billion dollars.
What to watch next
- Confirmation of the final closing date for the merger
- Verification of the final transaction valuation
- Evidence of the first year of film production quotas being met
confidence 90%Sources used for this update (12)
- The New York Times — Paramount to Resolve Antitrust Lawsuit, Clearing the Way for Warner Bros. Acquisition
- Reuters — Paramount settles with US states in big step towards closing Warner Bros merger
- CNN — State attorneys general agree to settle Paramount merger lawsuit | CNN Business
- Forbes — States Settle Paramount-Warner Bros. Lawsuit—Clearing Way For Merger To Go Through
- Variety — David Ellison Says Paramount Hopes to Close Warner Bros. Deal in ‘ Approximately Two Weeks’ in Staff Memo
- Pittsburgh Post-Gazette — States settle lawsuit over Paramount-Warner merger, clearing key hurdle for $81 billion deal
- KATU — Oregon, Wash. settle suit over Paramount-Warner merger, clearing key hurdle for $81B deal
- Deadline — Paramount WBD Must Divest Miramax If They Miss 30 Films A Year
- www.hollywoodreporter.com — California Vowed to Stop Paramount-Warner Bros. Merger. Why Did It Fold?
- finance.yahoo.com — Paramount settles lawsuit with US states, clearing way for $110bn merger with Warner Bros
- www.decaturdaily.com — States settle lawsuit over Paramount-Warner merger, clearing key hurdle for $81 billion deal
- www.pbs.org — What the Paramount-Warner Bros. merger settlement means for Hollywood
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