Paramount Clears Its Last Merger Hurdle With a $1.5B Pledge to US Film Production
Hollywood’s latest blockbuster came with a settlement instead of a sequel. Paramount settled a 12-state antitrust challenge to its Warner Bros. Discovery takeover, pledging at least $1.5B more toward domestic film production over five years. Shares of both companies surged as reports circulated, with the deal requiring no major divestitures.
- Paramount must release 30 theatrical films yearly for two years, then 32, with a $30M penalty per missed film.
- The combined company commits $47.5M to a worker retraining fund and $17.5M to the Writers Guild health fund.
Ticking clock: Ellison’s threat to move operations out of California added pressure to settle, with a $7M daily fee looming from Oct. 1. Paramount can now close its $111B takeover, taking on roughly $80B in debt and preparing for broad layoffs. CBS News and CNN will remain under a five-member editorial independence board, despite states demanding their divestiture. And with neither network on the chopping block, Paramount gets to keep its Hollywood empire intact.
