States including California and New York sued over concerns of ‘extinguishing competition’ with $81bn merger.
Paramount has reached a settlement with California and several other states that sued over a proposed $81bn merger with Warner Bros Discovery, according to reports on Monday, clearing the way to consolidate some of Hollywood’s most recognizable TV networks and studios under one owner.
Though the merger was approved by the justice department in June, a coalition of 12 states, led by California, had sued over concerns that combining two of the five last legacy studios in Hollywood would “extinguish competition” and lead to fewer movies in theaters and on streaming platforms.
Four holdout states held out on a deal until this weekend, according to Bloomberg.
In return, Paramount will not have to sell its cable channels MTV, Nickelodeon and Showtime, as was discussed in negotiations, the Wall Street Journal reported.
Reports emerged last week that, after months of speculation, WBD and Paramount were in the process of selling their studio lots in California and leaving the state amid the antitrust lawsuit, which would have been a large hit to Los Angeles’s already film and entertainment industry.
Twelve states said that a merger between Paramount Skydance and Warner Bros Discovery would result in fewer entertainment options and higher prices for consumers.
Last summer, Skydance Media bought Paramount in an $8.4bn merger, a deal led by David Ellison, the Skydance owner and son of billionaire tech mogul Larry Ellison.