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Paramount has settled the antitrust lawsuit brought by 12 states seeking to block its $11 billion acquisition of Warner Bros., removing the last significant obstacle to the merger.
California Attorney General Rob Bonta, who led the coalition, announced the agreement at a press conference in Los Angeles, with the deal now expected to close in early October.
As part of the settlement, Paramount agreed to establish a news editorial independence board that will oversee CBS News and CNN, and committed to releasing 30 theatrical movies a year. The transaction hands Paramount chief David Ellison control of the DC and Harry Potter universes along with a broad catalog of other franchises.
Federal authorities in the United States, including the Department of Justice, along with European regulators, had already signed off on the deal, so the state settlement effectively finalizes the acquisition.
The Writers Guild of America also settled its own lawsuit against the deal, though the union maintained its objections.
“Now that the Attorneys General have settled with Paramount, however, as a nonprofit, the WGA must contend with the reality of forging ahead alone, with no backing from government enforcers, with a complex antitrust lawsuit that would cost millions of dollars to pursue through trial,” the guild said in a statement. It noted that Paramount agreed to “prohibit writer layoffs at CBS News Broadcast for 5 years, and to pay $17.5 million to our health fund along with our attorneys’ fees in the litigation.”
Not every attorney general endorsed the outcome. Several sought stronger concessions, including Connecticut Attorney General William Tong.
“Connecticut wanted and demanded full divestiture of CNN and CBS News,” Tong said in a statement. “We wanted to save ethical and independent journalism and news. We fought aggressively for that remedy. I am deeply disappointed that we could not do more.”
Bonta and Paramount had entered late-stage negotiations toward a settlement on Friday. Paramount weighed leaving California if no deal was reached, prompting Governor Gavin Newsom and Los Angeles Mayor Karen Bass to press Bonta to settle.