Paramount reaches US$110b deal with US states, clearing path to Warner takeover
SAN JOSE, Sept 22 — The entertainment group Paramount has cleared a major hurdle in its takeover of Hollywood rival Warner Brothers, German Press Agency (dpa) reported.
Paramount reached an agreement on Monday with several United States (US) states that had sought to block the deal, worth more than US$110 billion (RM449 billion), through legal action.
The agreement stipulates that the merged group will invest more money in the US and specifically in Hollywood, said California’s Attorney General Rob Bonta.
A new editorial oversight board has been agreed for the news channel CNN and Paramount’s broadcaster CBS News, designed to safeguard their independence.
Paramount’s commitment that the studios will release a combined total of 30 films a year in cinemas, at least for the first two years following the merger, has been reaffirmed, according to Bonta.
The financial news service Bloomberg reported that the screenwriters’ union is also dropping its lawsuit against the Warner takeover following an agreement with Paramount. Among other things, the studio has agreed to contribute US$17.5 million to a healthcare fund for the writers.
The states led by California argued in their antitrust lawsuit that the concentration of economic power at Paramount would harm Hollywood and the cinema business.
US media reported that Paramount had threatened to begin the process of moving out of California from October onwards if no agreement is reached.
Paramount was taken over just over a year ago by the family of tech billionaire Larry Ellison.
The Warner group also owns the news channel CNN, whose fate has received particular attention in debates surrounding the takeover. CNN often reports critically on US President Donald Trump. Larry Ellison is known as a Trump supporter.
