Paramount Skydance has reached an agreement with California and other states that sought to block its $110 billion merger with Warner Bros. Discovery. This removes one of the main obstacles to completing the months-long deal, Bloomberg reports, writes UNN.
Details
In July, 12 states led by California filed a lawsuit seeking to block the merger. They argued that the combination of the two media giants could weaken competition and lead to higher prices for consumers.
Paramount has now reached a settlement with the states. According to Bloomberg, one of the agreements involved creating independent editorial boards for CBS and CNN.
The deal will unite some of the largest media brands in the United States
If the merger is completed, the CBS and CNN news networks, Paramount Pictures and Warner Bros. Pictures film studios, as well as the Paramount+ and HBO Max streaming services, will come under the control of a single company.
US court extends pause in Paramount and Warner Bros. $110 billion deal24.07.26, 05:37
According to The Wall Street Journal, the concessions also under discussion included Paramount investing $1.5 billion in film production in California, preserving studio complexes, and committing to release 30 films a year. The possible sale of some cable channels was also considered.
The U.S. Department of Justice approved the deal back in June, while the European Union granted conditional approval in July. Resolving the dispute with the states removes yet another significant legal obstacle to completing one of the largest mergers in the history of the media industry.