Details emerge from Paramount’s settlement deal with state AGs
Details emerge from Paramount’s settlement deal with state AGs
Hours after a group of 12 states announced they were settling an antitrust lawsuit against Paramount’s merger with Warner Bros. Discovery, new details of the deal are available.
Paramount’s legal team was likely doing jumps for joy on Monday, when the company made a deal with a group of 12 states that were suing to stop its merger with Warner Bros. Discovery. Now, additional details have emerged, including one that casts doubt on the effectiveness of the oversight boards that will be established for CNN and CBS.
Key Details:
- No sale: Paramount will not have to sell any cable networks as part of the settlement.
- Toothless?: The oversight boards for CNN and CBS will be appointed by Paramount.
- Us, too: The WGA’s lawsuit is included in the settlement deal.
The deal between Paramount and the 12 state attorneys general will not force the company to sell off any cable channels. There had been some thought that the states would push Paramount to divest some cable assets, but it has kept a hold of all its channels.
The independent editorial oversight boards that Paramount has pledged to establish over CNN and CBS were initially seen as a big win for the states, which have shown concern over the right-leaning Ellison family’s potential to slant the networks’ coverage favorably toward President Trump and his allies. But the journalists appointed to that board will be chosen by Paramount, and the only requirement for those journalists is that they have at least 10 years’ experience. Writer layoffs at CBS News have been prohibited for five years.
The deal also includes a $1.5 billion investment by Paramount for home-grown film production and job creation, and there are additional workforce development funds built into the agreement, as well. Paramount caused a real scare in California political circles by threatening to move out of state entirely if the lawsuit was not settled, which would have led to major job losses in the state.
The merger of Paramount and WBD is still expected to lead to significant layoffs, the details of which will likely become available soon. But it’s the last significant hurdle Paramount has to clear before it can close the merger with WBD once and for all; a separate lawsuit brought by the Writers Guild of America is included in the settlement, so there will be no more litigation days in court.
“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,” Ellison said in a statement. “Our goal has always been to build a stronger Hollywood — one with more stories told, greater choice for consumers and stronger competition.”
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