Paramount Skydance is discussing a $1.5B investment in movie and television production in California as part of potential concessions aimed at resolving the legal challenge to its proposed acquisition of Warner Bros. Discovery, The Wall Street Journal reported. The investment is among several measures under discussion between Paramount Skydance, California Attorney General Rob Bonta's office, and a coalition of states that sued to block the transaction. The discussions are part of advanced settlement talks over the $81B deal, which California and 11 other states sued to block in July, arguing the combination could create too much concentration in theatrical films and cable television markets. Paramount Skydance has also discussed committing to keep both its studio lot and Warner Bros. Discovery's studio lot in California and not sell either facility, after previously exploring moving out of the state as opposition to the merger intensified. Another potential concession would impose penalties if Paramount Skydance fails to meet an earlier commitment to produce 30 movies a year following the merger, with one option under discussion involving the sale of its stake in Miramax, and the sides have also discussed selling some cable channels and creating a board to help ensure CNN retains editorial independence.
Paramount Skydance Corporation
Warner Bros Discovery Inc