Paramount Skydance and California Attorney General Rob Bonta are discussing potential concessions that could pave the way for an out of court settlement over Paramount’s proposed $110 billion acquisition of Warner Bros. Discovery.
The talks involve California and 11 other states that sued in July to block the transaction, arguing that the combination could give the enlarged company greater influence over film and television prices.
One of the proposals under discussion is a $1.5 billion investment in film and television production in California. Brandspur Brand News reports that the parties are also considering measures designed to preserve Paramount and Warner Bros. Discovery’s studio operations in the state.
Under the reported proposals, neither the Paramount nor Warner Bros. studio lots would be sold, while the companies would maintain their presence in California.
Another issue being discussed is Paramount’s earlier commitment to release at least 30 films theatrically each year after the acquisition. Possible enforcement measures could include financial penalties if the target is not met, with one proposal reportedly involving the surrender of Paramount’s stake in Miramax.
The negotiations also reportedly include plans to sell some cable channels and establish a board to help safeguard CNN’s editorial independence following the proposed acquisition.
The transaction is a central part of Paramount Chief Executive Officer David Ellison’s strategy for the company. He has argued that combining the two major Hollywood businesses would create a stronger operation with a broad portfolio spanning film, television and streaming.
The latest discussions follow reports that a settlement between Paramount and the states could be reached as early as this weekend. Independent monitoring of CNN’s content and commitments relating to theatrical film releases have also reportedly featured in the negotiations.
However, no settlement has been announced. A spokesperson for the California Attorney General’s office said potential settlement discussions were confidential and that the office could neither confirm nor deny whether negotiations were taking place or comment on reported terms.
Paramount Skydance had not immediately responded to a request for comment outside regular business hours.
The proposed concessions come as the acquisition faces one of its major regulatory hurdles. Any agreement reached with the states would determine whether the transaction can move forward without the lawsuit continuing to challenge the proposed combination of the two media companies.
