Paramount reaches settlement with 12 state attorneys general on merger lawsuit

LOS ANGELES (KYMA, NBC) - Paramount Skydance has reached a settlement with the 12 state attorneys general regarding the lawsuit over their acquisition of Warner Bros. Discovery (WBD).

California Attorney General Rob Bonta, who led the lawsuit, held a press conference Monday morning, confirming the settlement.

"Today, we have secured a settlement that resolves our antitrust concerns of the Warner Bros./Paramount merger — concerns that the merger will lower output and increase prices — by guaranteeing massive investment in domestic film production and providing enforceable guardrails to help keep cable prices competitive. Let me be clear: This settlement is not a vote of support for this merger. But we believe this settlement, which resolves our antitrust concerns in every market alleged in our case, protects competition and consumer choice, and puts workers' needs, concerns, and futures first, is the best course of action," said Attorney General Bonta. "When we get down to brass tacks, what we heard over and over from people who would be most directly and immediately impacted by the merger is that what matters most is consistent film output, domestic production, and protecting the livelihoods of workers above and below the line. As such, our settlement provides court-enforceable commitments for more films, an infusion of an additional $1.5 billion into home-grown film production, and protections for workers who are impacted by the merger. There's no Hollywood without the people who work on and off screen to make the magic happen, and today's settlement protects workers, jobs, and Hollywood."

As part of the settlement, Bonta said it included an annual film release commitment, domestic production, independent film fund, protection for workers, cable agreements and ongoing monitoring.

In addition, Paramount must establish a News Editorial Independence Board for CNN, which is owned by WBD, and CBS News, which Paramount owns.

Arizona Attorney General Kris Mayes, who was also part of the lawsuit, issued a statement on the settlement.

"This settlement will support Arizona businesses, including local movie theaters, by ensuring films get theatrical releases that bring audiences through their doors and boost the neighboring shops and restaurants around them," said Attorney General Mayes. "I'm proud to have fought for Arizona's businesses."

David Ellison, CEO of Paramount, also responded to the settlement, saying he's excited to bring together the two iconic companies, and expects to close the deal in two weeks.

As a result of the settlement, the Writers Guild of America has also agreed to drop its lawsuit blocking the merger.

To watch the livestream of the press conference, see attached video.