California Attorney General Rob Bonta and a coalition of 12 state attorneys general have secured a settlement with Paramount Skydance Corporation that resolves their antitrust lawsuit challenging the merger with Warner Bros. Discovery. The settlement includes enforceable commitments to increase film production, boost domestic spending, protect workers, and maintain competition in cable negotiations.
The merged company must commit to releasing 30 films per year (including 20 wide releases) in the first two years and 32 films per year (21 wide releases) in years three through five, with at least four independent films released each year. If the company misses film output targets in any year, it must divest Miramax Studios and pay $30 million per missed film to union healthcare and retirement trusts and to state attorneys general for antitrust enforcement.
Paramount must invest an additional $1.5 billion over five years in domestic U.S. film production above its 2025 spending levels. The settlement also establishes a $25 million independent film fund with annual $5 million contributions and commits $47.5 million over five years to a workforce fund for training and career development of workers displaced by the merger. The company must also honor previously established collective bargaining agreements and negotiate in good faith with unions.
For five years, Paramount must conduct negotiations for its basic cable channels separately from Warner Bros. basic cable channels to preserve competitive dynamics and help keep consumer prices down, according to the attorneys general. The company must continue offering a free streaming service similar to Pluto TV and maintain current service quality. An independent monitor will oversee compliance with the agreement.
The coalition of attorneys general includes those from Arizona, Colorado, Connecticut, Massachusetts, Minnesota, Nevada, New Jersey, New Mexico, New York, Oregon, and Washington, in addition to California.