- A coalition of 12 state AGs reached a settlement with Paramount Skydance Corporation and Warner Bros. Discovery resolving the states’ lawsuit alleging the merger of the two entertainment companies. In July, the coalition of AGs sued to challenge the proposed merger of Paramount and Warner Bros. Discovery, arguing the deal was illegal, likely to lessen competition, threatened higher prices for consumers, reduced film production and theatrical releases, and changes to the variety and availability of entertainment content
- Pending approval by the court, the settlement would impose several requirements on Paramount for a term of five years. Paramount will be obligated by court order to increase film output, a minimum of an additional $1.5 billion commitment to bolster domestic film production, a $47.5 million fund for workers who are impacted by the merger, and restrictions on how the company handles cable negotiations. The settlement also includes an annual film release commitment that requires Paramount, for a term of five years, to release 30 films a year, including 20 wide releases in the first two years, 32 films, with 21 wide releases in years three, four, and five. Lastly, Paramount commits to releasing at least four independent films in each year of the commitment period.
- If Paramount fails to meet this film output requirement in any year, the company will be required to divest Miramax Studios and must pay $30 million per missed film toward the healthcare and retirement funds associated with the Writers Guild of America (WGA), International Alliance of Theatrical Stage Employees (IATSE), Directors Guild of America (DGA), International Brotherhood of Teamsters (IBT), and other unions toward the Motion Pictures & Television Fund and to the National Association of Attorneys General for antitrust enforcement.