From The Hollywood Reporter · James Hibberd · · 1m 30s
Paramount-Warner Bros. Deal Coughs Up $5M for Indie Films
Paramount Skydance's $111 billion merger with Warner Bros. Discovery allocates just $5 million yearly for indie films despite promises of 30 annual productions.
In brief
Paramount Skydance's $111 billion merger with Warner Bros. Discovery allocates just $5 million yearly for indie films despite promises of 30 annual productions. Paramount Skydance will spend $5 million annually on indie films under its $111 billion merger with Warner Bros. Discovery, a symbolic amount after legal…
Mega-merger deal
Paramount Skydance acquired Warner Bros. Discovery for $111 billion, pledging at least 30 films yearly and $1.5 billion in domestic film and TV production over five years.
Indie film fund promise
The consent decree requires Paramount to allocate $5 million per year for indie films, including original screenplays or productions outside major studios.
Micro-budget films
Paramount could buy six micro-budget blockbusters like Obsession, which cost $750,000, but most indie films cost tens of millions.
“Obsession”
Budget disparity
The Drama cost $28 million, while Megalopolis ballooned to $120 million, highlighting indie film budget ranges.
Flexible spending
The $5 million figure doesn't limit spending; 20% of films must have $50 million budgets, but 80% carry no budget requirements.
California AG criticism
California Attorney General Rob Bonta pledged to 'ensure this unlawful merger never sees the light of day' but the deal required no major structural changes.
“ensure this unlawful merger never sees the light of day”
Consequence for violations
Paramount must sell its 49 percent stake in Miramax or divest cable networks like BET and VH1 if it violates the 30-films-per-year pledge.
The essence
Paramount Skydance will spend $5 million annually on indie films under its $111 billion merger with Warner Bros. Discovery, a symbolic amount after legal battles.
