NEW YORK: The settlement talks between Paramount Skydance Corp and California officials over the lawsuit challenging the Warner Bros Discovery Inc acquisition have included a promise by the company to stay in the state.
Other terms being considered include an editorial board to monitor CNN, Paramount releasing 30 movies a year in theatres, an agreement to not negotiate distribution for all of the company’s channels together and a sale of some cable channels, according to a person familiar with the discussions, who asked not to be identified because the talks aren’t public.
Paramount chief executive officer David Ellison and California attorney general Rob Bonta have personally been involved in the settlement discussions, according to two people familiar with the matter.
Some of the settlement talks have not included other states or the Writers Guild, which are also suing to block the Warner Bros acquisition, the people said.
Some of the parties do not approve all of the terms being discussed.
Paramount is headquartered in New York, but has substantial operations in Los Angeles. Ellison and his chief legal officer, Makan Delrahim, have done little to quell rampant stories in the media that the company is considering relocating to another state.
Any settlement would likely need the support of all 12 Democratic states challenging the merger, along with the Writers Guild, said the people, who were granted anonymity to discuss a confidential process.
Paramount shares rose as much as 8.7% in after-hours trading last Friday following a Wall Street Journal report that the company was in advanced talks with California officials about settling the litigation.
A California judge also ordered settlement talks, which are formally scheduled for Oct 14 to 15. A trial date isn’t scheduled until March.
Paramount previously made public offers to release 30 films a year in theatres and to increase production of TV shows.
Bonta has said he doesn’t favour those types of behavioural remedies because they are hard to enforce. — Bloomberg
