Paramount CEO David Ellison and California Attorney General Rob Bonta’s settlement talks have the end in sight.
A federal judge Tuesday set a hearing on the settlement to close the 12 state AGs’ antitrust lawsuit against Ellison’s $110 billion acquisition of Warner Bros. Discovery. The two parties will meet Thursday.
In the same court order, U.S. District Judge Araceli Martinez-Olguin scrapped the scheduled hearing on Paramount’s $1.88 billion bond request. She has not approved the settlement yet.
Martinez-Olguin wrote that the hearing will “address certain outstanding questions regarding the factual and legal underpinnings of the parties’ proposed consent decree, as well as the implementation of the proposed consent decree.”
The agreement, which was announced on Monday, includes a minimum investment of at least $300 million annually in domestic TV and film production, or $1.5 billion over five years. Paramount has agreed to produce 30 films per year in the first two years of the deal, which will be upped to 32 per year in each of the following three years. At least four films per year must be independent films and at least 20% must be blockbusters. If Congress passes a federal film tax credit, Paramount agreed that 20% of all film production must be in the U.S. for the first two years of the merger and 30% of the next three.
The combined company must also establish an editorial board to monitor CNN and CBS News’ independence, which will include five established active or retired journalists who have practice journalism for a minimum of 10 years. No more than two members may be affiliated with the same political party and members are expected to serve for three years from the date of their appointment.
Additionally, Paramount and WBD are required to continue negotiating their cable packages separately for five years to preserve competition. It also includes restrictions on changes to affiliate fee negotiations and agreements with distributors and a restriction on the use of confidential information. They must also continue to operate the free, ad-supported streaming service Pluto TV during the commitment period.
The settlement also includes maintaining the studio lots of both companies, honoring collective bargaining agreements and committing $9.5 million each year for five years in workforce training and career development programs in film and television production communities at qualified educational institutions and film programs and community arts organizations. Within 30 days of closing, the combined company will also establish a fund for purchasing independent films and make an annual contribution of $5 million.
Thursday’s hearing is set for 11 a.m. PT and will be hosted on Zoom.
