Paramount and states reach deal over Warner Bros. merger lawsuit
The agreement is expected to be formally announced on Monday
Paramount's ambitious plan to merge with Warner Bros. Discovery recently hit a roadblock when a coalition of U.S. states took the ongoing deal to court.
They argued that merging the two giants would reduce competition and that the repercussions, if the merger goes through, would be broader.
They said the impact would extend to movie theatres, cable distributors, filmmakers, other industry workers, and consumers and audiences.
Paramount, on its end, previously vowed to fight the case in court.
David Ellison, its head, said in an earlier memo, “We believe this is the right path because the facts and the law are on our side, and a full hearing will demonstrate why the plaintiffs’ arguments should not prevail.”
But now Paramount has reached an agreement rather than fighting in court.
In return, the studio offered certain concessions, according to The Wall Street Journal.
An investment worth $1.5 billion in film and TV production in California.
Along with a pledge not to sell either the studio lot or the cable networks.
