SACRAMENTO, United States, Sept. 21 (Xinhua) -- California Attorney General Rob Bonta said Monday that 12 states had reached a settlement with Paramount Skydance and Warner Bros. Discovery, resolving the states' antitrust lawsuit challenging Paramount's proposed 110-billion-U.S.-dollar acquisition of Warner Bros. Discovery.
Under a proposed consent decree filed Monday in federal court, the combined company would be required to release at least 30 films a year in U.S. theaters during the first two years of a five-year commitment period, and at least 32 films annually during the following three years. It would also have to spend at least 300 million U.S. dollars more each year on film production in the United States than the two companies spent in 2025, for a total increase of at least 1.5 billion dollars over five years.
The agreement also requires the creation of a five-member News Editorial Independence Board overseeing CNN and CBS News, which are owned by Warner Bros. Discovery and Paramount, respectively. The board, which would be established within 180 days of the merger's closing, would oversee editorial independence and resolve disputes involving alleged reporting bias and compliance with agreed standards of fairness and accuracy.
For each film below the annual target, the company would be required to pay 30 million U.S. dollars into designated funds. If a shortfall is not remedied within six months, the company could be required to divest its entire interest in Miramax Studios, according to the filing.
The Paramount studio lot in Los Angeles and Warner Bros. lot in Burbank, California, could not be sold or closed during the five-year commitment period. The companies' basic cable channels would have to be offered to distributors separately unless a distributor requests otherwise in writing.
A material breach of the cable provisions that remains uncured after a final court order could trigger divestiture of several channels, including Black Entertainment Television (BET), VH1 and Comedy Central, according to the filing.
Colorado and Washington did not join the editorial-board provisions, while Colorado also did not join the studio-lot commitment, according to the filing.
Connecticut Attorney General William Tong said in a statement that his state had sought full divestiture of CNN and CBS News and was deeply disappointed that the coalition could not obtain more.
Bonta led California and 11 other states in suing on July 13, alleging the merger could substantially reduce competition in theatrical film distribution and basic cable television licensing. A federal judge granted the states a temporary restraining order on July 20.
Paramount and Warner Bros. Discovery deny that the merger violates applicable law, according to the filing. The proposed consent decree does not constitute an admission of wrongdoing and requires federal court approval before taking effect.
