A deal has been struck to clear the final hurdle in Paramount Skydance’s acquisition of Warner Bros. Discovery.
Several state attorneys general, led by California’s Rob Bonta, sued Paramount in July, saying that the mega entertainment corporation would have put too much power over cable TV and films under one company, The New York Times reported. Paramount’s purchase is worth about $110 billion.
Bonta announced the settlement on Monday. The takeover of Warner Bros. by Paramount will take effect early next month, CNN reported.
Bloomberg said four states — Massachusetts, New York, Connecticut and Minnesota — were the lone holdouts but eventually said that the cost of the court battle wasn’t justifiable, without California directing it, Bloomberg reported before the news of the settlement had been confirmed.
Reuters said the deal includes creating independent editorial boards for CNN and CBS, as well as a $30 million penalty per film if Paramount does not meet the 30-film-a-year goal.
Not everyone agrees with the settlement, The Associated Press reported.
“Today, billionaires have yet again bribed, censored, and bullied their way to the top,” Alvaro Bedoya, senior adviser at the American Economic Liberties Project and former FTC commissioner, said in a statement earlier Monday. “Layoffs will follow. People from L.A. to Atlanta will lose their jobs, small businesses will lose their contracts, your cable bill and movie ticket will be even more expensive.”
Check back for more on this developing story.
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