Paramount Skydance and Warner Bros. Discovery shares rallied 7% and 5% respectively on Monday as Paramount reportedly advanced settlement talks with California officials who had sought to block its $111 billion acquisition of Warner Bros. on antitrust grounds. Under the proposed settlement, the combined company would face financial penalties if it fails to release at least 30 films in theaters each year, with Paramount paying $30 million for each movie short of that target, according to two people familiar with the discussions cited by Bloomberg. The report also said Paramount could be forced to sell its 49% stake in Miramax if it does not meet the target. Twelve Democratic state attorneys general, along with the Writers Guild of America, sued to block the deal on antitrust grounds, arguing it would give Paramount too much control over the film and cable television industries, and settlement talks between Paramount and California Attorney General Rob Bonta have accelerated in recent days, although no final agreement has been reached. Paramount's takeover followed a bidding battle with Netflix, and Warner shareholders approved Paramount's revised bid in April, valuing the deal at approximately $111 billion including debt, expanding the entertainment assets controlled by Paramount chief executive David Ellison, son of Oracle co-founder Larry Ellison.
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