Paramount Skydance Corp. has reportedly reached a settlement with the states seeking to block its proposed takeover of Warner Bros. Discovery Inc., clearing the way for a historic Hollywood merger.
California Attorney General Rob Bonta led a group of state attorneys general who filed a lawsuit challenging the massive $111 billion deal that was initially expected to close during the third quarter of this year.
“After a frenzied weekend of negotiations, $PSKY and state AGs have agreed to a settlement framework and an official deal announced this morning,” FOX Business Network senior correspondent Charlie Gasparino reported on Monday.
PARAMOUNT-WBD MERGER ON HOLD AFTER JUDGE GRANTS TEMPORARY RESTRAINING ORDER
Gasparino added that Paramount will make a commitment to movies in California and the U.S., keep the company headquarters in California and distribute 30 movies a year. CNN will have an “independent editorial structure,” according to Gasparino.
Paramount and Bonta’s office did not immediately respond to requests for comment.
Bloomberg, The New York Times and the Wall Street Journal have also reported a looming settlement.
WARNER BROS DISCOVERY SHAREHOLDERS APPROVE PARAMOUNT SKYDANCE DEAL
The Justice Department (DOJ) announced earlier this year it has closed its antitrust investigation into Paramount Skydance’s proposed acquisition of WBD, concluding the transaction is not likely to harm competition or American consumers.
The Antitrust Division said its eight-month review examined more than 2 million documents and found the deal could strengthen competition across the media and entertainment industry, including in streaming video, traditional television and theatrical film distribution. However, state attorneys general retain independent authority under antitrust laws.
Paramount CEO David Ellison, the son of billionaire Oracle co-founder Larry Ellison, took control of Paramount last year when Skydance Media and Paramount Global completed an $8 billion merger. Adding WBD to his portfolio would make the younger Ellison one of Hollywood’s most powerful people.
This is a developing story. Please check back for updates.
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