Paramount wins antitrust clearance

David Ellison's Paramount Skydance has settled the antitrust lawsuit brought by 12 states and California's Attorney General Rob Bonta announced the settlement on Monday.

Film release commitments required

Paramount agreed to release 30 movies in theaters each of the next two years, then 32 movies in each of the next three years, with at least 20 percent as tentpoles with budgets of at least 50 million dollars.

Penalties and production spending

If Paramount misses annual film release targets, it pays 30 million dollars per movie and gets six months to catch up or must divest Miramax. It also agreed to increase US production spending by at least 300 million dollars yearly for five years.

Editorial independence and rate negotiations

Paramount will establish a board to support CBS News and CNN's editorial independence and ensure objective, fact-based reporting. It will also negotiate cable TV network rates separately for five years.

Deal expected to close in two weeks

Ellison said Paramount is tentatively planning to complete its acquisition of Warner Bros. Discovery in approximately two weeks, creating a media giant controlling HBO, HBO Max, CNN, TBS, HGTV and major studios.

“We have complete clearance for this merger and can move toward closing.”

Consumer concerns about pricing remain

Mike Proulx at Forrester said regulators debated theatrical output and production commitments, but consumers are asking whether the merger will improve their entertainment experience without increasing their monthly bill.

“Will this merger improve my entertainment experience without increasing my monthly bill?”