Engadget
The mega-merger of the year will go forward.
Paramount has overcome the biggest hurdle in its quest to acquire Warner Bros. The company has settled the antitrust lawsuit brought forth by 12 states, which was led by California Attorney General Rob Bonta, to stop the $11 billion merger. According to CNN, the announcement was made by Bonta at a press conference in Los Angeles today, and the deal is now expected to close in early October.
According to CNN, Paramount has agreed to a news editorial independence board that'll oversee CBS News and CNN itself and to commit to 30 theatrical movie releases a year. With the merger, Paramount chief David Ellison will be gaining control of the DC and the Harry Potter universes, among many other large franchises.
The Writers Guild of America (WGA) also settled its lawsuit against the merger despite the fact that its objections remain. "Now that the Attorneys General have settled with Paramount, however, as a nonprofit, the WGA must contend with the reality of forging ahead alone, with no backing from government enforcers, with a complex antitrust lawsuit that would cost millions of dollars to pursue through trial," the WGA said in a statement. It notes that Paramount has agreed to "prohibit writer layoffs at CBS News Broadcast for 5 years, and to pay $17.5 million to our health fund along with our attorneys' fees in the litigation" as part of the settlement.
Despite the settlement, not all of the attorneys general are happy with this outcome. CNN says that several wanted stronger concessions, including CT Attorney General William Tong. "Connecticut wanted and demanded full divestiture of CNN and CBS News," he said in a statement released by his office. "We wanted to save ethical and independent journalism and news. We fought aggressively for that remedy. I am deeply disappointed that we could not do more. The complete abdication of the federal government's enforcement role in this fight left states with one arm tied behind our backs."
On Friday, the Wall Street Journal reported that Paramount was in advanced talks with Bonta to reach an agreement that would enable the purchase to push through. According to Politico, Paramount considered moving out of California if it couldn't reach a deal, leading Gov. Gavin Newsom and Los Angeles Mayor Karen Bass to urge Bonta to settle the lawsuit. To note, regulators in the US, the DOJ and the European Union have already approved the merger, and this agreement much seals the deal.