From The Hollywood Reporter · Winston Cho · · 1m 20s
Paramount merger talks get a court date
Paramount, California and the WGA will test whether a Warner Bros. Discovery deal fight can be settled.
In brief
Paramount, California and the WGA will test whether a Warner Bros. Discovery deal fight can be settled. The settlement talks hinge on whether Paramount will offer structural fixes, not just conduct promises. Originally reported by The Hollywood Reporter.
Talks are scheduled
Paramount will meet California attorney general Rob Bonta and the Writers Guild of America for two days starting Oct. 14 to discuss settling lawsuits over its Warner Bros. Discovery bid.
“Paramount will sit down with California attorney general Rob Bonta and the Writers Guild of America”
Trust is strained
The meeting comes after Bonta canceled an earlier session, accusing Paramount representatives of leaking and misrepresenting private negotiation details.
Sides must show cards
Before the conference, both sides must file short statements laying out their claims, chances of winning, key disputes and issues that could unlock a deal.
“a candid evaluation of the parties’ likelihood of prevailing”
Negotiators need authority
Lead negotiators for Paramount, the states and the WGA must attend with power to settle. Judge Thomas Hixson will oversee the discussions.
“possibility of a creative resolution of the dispute”
Remedies remain apart
Bonta wants structural remedies, usually meaning asset sales. Paramount has offered conduct promises, including at least 30 movies with 45-day theatrical windows.
A bond fight looms
The government also asked the court to make the states and WGA cover costs from the delay. If Paramount wins that fight, a $1.88 billion bond may be required.
“a $1.88 billion bond to cover losses”
The takeaway
The settlement talks hinge on whether Paramount will offer structural fixes, not just conduct promises.
