Paramount is poised to close its $111bn takeover of Warner Bros after settling a legal challenge brought by a dozen US states. As part of the settlement, the US media giant controlled by Larry Ellison has reportedly agreed to maintain independent editorial boards for CBS and CNN, and to pay a $30m penalty per film if it falls short of its promise to release 30 films in cinemas each year, Bloomberg reported. The merger had effectively been on hold since July, when a group of Democratic-run states led by California attorney general Rob Bonta sued to derail the deal, warning it would cause substantial harm to cinemas, cable TV operators and audiences by reducing the number of major Hollywood studios from five to four and combining two of the largest US news networks. The settlement was reportedly reached after four of the states dropped their opposition amid fears of soaring legal costs, and after Paramount threatened to pull out of California unless the case was dropped; Bonta accused the company's executives of blackmailing him to reach a settlement. Paramount had agreed to pay a ticking fee of $650m to Warner Bros shareholders for every quarter the transaction is delayed beyond the end of September, equivalent to $7m a day, and the merger has already been cleared in dozens of countries including the UK, where Paramount owns Channel 5.
Paramount Skydance CorporationParamount settles the states' lawsuit, clearing the legal hurdle to close its $111bn Warner Bros takeover.
Warner Bros Discovery IncThe settlement unlocks Paramount's $111bn takeover of Warner Bros, moving the long-delayed deal toward completion.
Oracle Corporation
