Tweakers · Technology

Paramount settles with states over Warner Bros. acquisition

Paramount has reached a settlement with twelve US states that sought to block its acquisition of Warner Bros. This appears to remove the last major obstacle to the deal.

The states feared that Paramount would gain too much power in the film and television industry by acquiring two major film studios and a streaming service. There were also concerns about the potential influence of Paramount CEO David Ellison's father, who has ties to Donald Trump, on the reporting of news channel CNN.

According to the settlement proposal, Paramount must release at least thirty films per year in cinemas for five years, four of which must be independent and 20 percent blockbusters. There will also be more investment in American film production. Non-compliance carries a fine of 30 million dollars per film.

Paramount must guarantee the independence of news channels CNN and CBS through an editorial board.

The Writers Guild of America is dropping its lawsuit against Paramount, stating that it is pointless to continue without government support. However, the union still believes the acquisition is harmful to writers and the industry.

Paramount CEO David Ellison is pleased with the resolution, which paves the way for the completion of the deal, already approved by the US and the EU. The settlement proposal still needs to be approved by the judge.

The acquisition must be completed by October at the latest. Otherwise, Paramount must pay a daily 'ticking fee' of 7 million dollars to Warner shareholders.

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