Paramount Skydance and California Attorney General Rob Bonta have discussed a series of concessions as part of efforts to reach an out-of-court settlement over Paramount’s proposed $110 billion acquisition of Warner Bros. Discovery, according to a recent report by the Wall Street Journal.
One of the major proposals under discussion is a $1.5 billion investment in film and television production in California. The negotiations are part of efforts to resolve a lawsuit filed by California and 11 other states seeking to stop the proposed acquisition.
The states filed the lawsuit in July, arguing that the combination of Paramount and Warner Bros. Discovery could create a powerful media company with increased influence over movie and television prices.
Paramount CEO David Ellison has made the proposed acquisition a central part of the company’s strategy, arguing that bringing two major Hollywood studios together would strengthen the business and unite a broad portfolio of film, television and streaming properties.
Beyond the proposed production investment, the parties have discussed commitments aimed at keeping both companies’ studio operations in California. These include an agreement not to sell either the Paramount or Warner Bros. studio lots and a commitment to maintain the companies’ presence in the state, according to the Wall Street Journal.
The negotiations have also focused on Paramount’s earlier pledge to produce at least 30 movies annually for theatrical release following completion of the acquisition.
Under proposals reportedly being considered, Paramount could face penalties if it fails to meet the target. One possible measure would involve the company giving up its stake in Miramax, the studio behind films including Pulp Fiction and No Country for Old Men.
Other concessions under consideration include selling some cable channels and creating a board to help protect CNN’s editorial independence after the proposed acquisition.
A spokesperson for the California Attorney General’s office made a report that potential settlement discussions were confidential and that the office could neither confirm nor deny whether negotiations were taking place or comment on their reported details.
Paramount Skydance did not immediately respond to a request for comment outside regular business hours.
The latest discussions follow reports that Paramount and the states could reach a settlement as early as this weekend. Independent monitoring of CNN’s content and a commitment to theatrical film releases have also reportedly featured among the terms being considered.
The outcome of the negotiations could determine one of the final major obstacles facing the proposed Warner Bros. Discovery acquisition.
