David Ellison’s Paramount has issued a statement confirming the company has settled the antitrust lawsuit with the 12 US state attorneys general, paving the way for Paramount’s $111bn acquisition of Warner Bros Discovery (WBD).
In a statement on Monday morning, Ellison said his goal had always been “to build a stronger Hollywood” and thanked the attorneys general and Writers Guild Of America, which also sued, as well as California Governor Gavin Newsom ”for his support throughout this process”.
An excerpt read: “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. We’re confident this agreement does exactly that, memorialising a series of commitments that include 30+ films annually and expanded US film production to help revitalize our industry here at home.”
Directors Guild of America welcomed the settlement in a separate statement.
Scroll to bottom for full statements
California AG Rob Bonta, who has been the figurehead in a lawsuit that argued any merger of the studios would stifle competition in the cable TV and theatrical sectors, is understood to have elaborated on the terms in a press conference on Monday morning. Screen will update with details shortly.
There was talk that Bonta and the attorneys general had sought a structural remedy such as an undertaking by Ellison to divest of certain assets like cable channels. In recent weeks the sense in Hollywood was that this would be an unlikely outcome.
The media mogul has indicated that he is unwilling to part ways with CNN despite concerns that a post-merger Paramount would result in a dominant news offering, given that Paramount already owns CBS News, and the need to maintain journalistic independence at the news channel.
Late last week when it emerged that Paramount and Bonta had been engaging in settlement talks there was talk around Hollywood that Ellison had offered to run Paramount Pictures and Warner Bros Pictures as separate entities. for an initial period He has also pledged that a combined company would release 30 features a year with minimum 45-day theatrical exclusivity. However these are behavioural remedies that are harder to monitor and enforce and it was unclear if Bonta would accept these.
Ellison was keen to get the transaction closed before October 1, when a ticking fee of approximately $7m a day and $650 a quarter kicks in, payable by Paramount to WBD shareholders.
Writers Guild Of America has also sued Paramount over the proposed merger and its case alongside that of the state AGs was due to be heard in a trial scheduled for March 2, 2027.
More to follow…
Statement from Paramount chairman and CEO David Ellison
“We are grateful to Attorney General Bonta and his fellow AGs, as well as the WGA, for engaging in good faith to find a path forward to a resolution that serves all parties, and to Governor Newsom for his support throughout this process. 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. We’re confident this agreement does exactly that, memorialising a series of commitments that include 30+ films annually and expanded U.S. film production to help revitalise our industry here at home.
Our goal has always been to build a stronger Hollywood — one with more stories told, greater choice for consumers and stronger competition. That vision was validated by unanimous approval from competition authorities in nearly 70 jurisdictions worldwide, who agreed this deal is pro-competitive, pro-consumer and pro-worker. Having now addressed the State AGs’ and WGA’s concerns, we have complete clearance for this merger and look forward to putting these commitments into action. Bringing Paramount and Warner Bros. Discovery together will build that stronger Hollywood, creating expanded opportunity for our people and even more great entertainment for audiences around the world.”
Russell Hollander, national executive director, Directors Guild of America
“We congratulate the parties on reaching an agreement that addresses a number of critical concerns related to the Paramount/WBD merger.
The AG agreement contains important binding and enforceable commitments that protect theatrical film and television markets and domestic film jobs. Equally important, it brings clarity and stability to the industry during a period of decreased production.
We especially thank California Attorney General Rob Bonta, and New York Attorney General Letitia James, for their leadership.
We intend to continue our discussions with Paramount regarding domestic television production, with a focus on ensuring a competitive and robust marketplace that protects jobs.”
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