Paramount Skydance has settled a lawsuit with dozens of US states, removing a major hurdle to its $110bn (\u00a382.8bn) merger with Warner Bros Discovery. <\/p>\n
California Attorney General Rob Bonta told a news conference that state officials agreed to terms after securing commitments to protect competition across film and television, and broadcasting.<\/p>\n
Still, “the settlement is not a vote of support for this merger,” Bonta said. “I don’t think these two companies should merge.” <\/p>\n
Paramount chief executive David Ellison hailed the resolution<\/a>, saying: “Our shared aim was an outcome that best serves consumers, workers and – most importantly -the creative community so vital to the art of visual storytelling.”<\/p>\n In a statement, Ellison said that now the state attorneys general and the Writers Guild of America (WGA) concerns had been addressed, “we have complete clearance for this merger and look forward to putting these commitments into action”.<\/p>\n Ellison had previously threatened to move studio operations out of California. <\/p>\n However, the WGA said it continues to believe the deal “will cause damage to writers and the industry at large”. <\/p>\n The guild said it was forced to settle its own lawsuit because, as a non-profit, it could not afford to fight the merger alone without government support. <\/p>\n The studio is set to pay $17.5m into the WGA health fund, cover legal fees, and prohibit writer layoffs at CBS News Broadcast for five years. <\/p>\n Bonta said the settlement will help boost film production in the US. Under the agreement, Paramount must release at least 30 films each year. <\/p>\n To prevent the studio from fulfilling its annual quota with low-budget or automated content, Bonta said there were strict guardrails against “AI-generated” films. <\/p>\n Officials wanted to guarantee “real, robust movies” that generate economic activity and put people back to work, he added. <\/p>\n Though Ellison previously indicated the merged company would keep its headquarters in California for the foreseeable future, Bonta clarified that this commitment was not written into the legal agreement. <\/p>\n “It’s not part of the deal,” Bonta said. <\/p>\n To ensure remaining terms are enforced, Paramount has agreed to the appointment of an independent monitor to oversee ongoing compliance<\/a> with the settlement. <\/p>\n