Paramount, California AG Near Settlement on Warner Bros. Merger Suit
Talks shift from asset sales to behavioral remedies as daily penalties pressure Paramount to close the $110 billion deal.
KEY POINTS
- Paramount and California AG Rob Bonta are in advanced settlement talks over the $110B Warner Bros. Discovery merger.
- Negotiations have shifted from structural remedies (asset sales) to behavioral remedies (monitoring, release quotas).
- A judge ordered a mandatory settlement conference for October 14-15; trial is set for March 2027.
- Paramount owes $7 million daily in 'ticking fees' to WBD shareholders after September 30.
- 12 state AGs sued in July; DOJ cleared the deal in June.
Paramount and California Attorney General Rob Bonta are in advanced talks to settle the state antitrust lawsuit blocking the $110 billion merger with Warner Bros. Discovery, according to the Wall Street Journal. The discussions mark a significant shift from August, when Bonta demanded structural remedies such as divesting cable channels and Paramount offered to sell CNN.
Current proposals focus on behavioral remedies, including independent content monitoring for CNN and a commitment to release 30 films annually in theaters. The sides also discussed operating the two movie studios separately for a transitional period rather than merging them immediately.
“Structural remedies, meaning divestitures, protect competition better than promises to behave.”
A mandatory two-day settlement conference is scheduled for October 14 and 15, ordered by a judge overseeing the case. The trial is set for March 2027, but Paramount faces escalating costs if the deal extends past September 30.
The merger agreement imposes a "ticking fee" of $7 million per day payable to Warner Bros. shareholders after September 30, amounting to roughly $650 million per quarter. This financial pressure is a key driver behind Paramount's softened negotiating stance.
Twelve state attorneys general joined the lawsuit filed in July after the Justice Department cleared the transaction in June. Los Angeles Mayor Karen Bass, Governor Gavin Newsom, and several industry guilds have publicly urged a settlement, while major theater chains and Lionsgate CEO Jon Feltheimer support the merger.
17 more sources below
COMMENTS (0)
No comments yet. Be the first.
RELATED STORIES
Kastamonu council backs revenue support for public transport operators instead of fare hike
Kastamonu municipal council considers revenue support for bus operators to offset rising costs without raising passenger fares.
Turkey Unveils 500 Billion Dollar Energy Roadmap to 2040
The plan targets 500 billion dollars in investment, 10 GW nuclear power, and 175 GW renewable capacity by 2040.
Jay Rockefeller, former West Virginia governor and senator, dies at 89
The last Democrat of the Rockefeller political dynasty died at his Washington home at age 89.
- Chile's Justice Minister Faces Constitutional Accusation Over Sentence Reductions
- Colombia adjusts strategy toward Democratic-led US Congress after midterm losses
- Democrats on track to secure comfortable US House majority
- Turkey Opens Tender for Five-Year Super Lig Broadcast Rights
- Senate opposition pushes public vote to block Alcolumbre reelection
This page was compiled with AI assistance from the outlets named above and passed an automated language check before publication. Montegre has no reporters of its own; the byline names the outlets the story was compiled from. Method and editorial standards