Paramount, a major U.S. media company, has settled with 12 states, including California, over its acquisition of WBD. The settlement includes expanding domestic film production and establishing a framework to safeguard editorial independence, and is expected to remove a major legal obstacle to the acquisition.
Paramount Skydance said it had settled with 12 states, including California, over its acquisition of Warner Bros. Discovery (WBD). The settlement is expected to significantly reduce the legal obstacles to the acquisition.
Under the settlement, Paramount will expand film production in the United States, with plans to increase the number of films produced annually in stages after the acquisition is completed. Specifically, it is targeting 30 films annually during the first 2 years after the acquisition and 32 films annually during the following 3 years.
In addition, Paramount will be required to produce at least 4 independent films each year and ensure that at least 20% of its total output consists of major films.
As another condition of the settlement, Paramount will establish a News Editorial Independence Board to safeguard editorial independence in the news coverage of CBS and CNN.
On the U.S. stock market on the 21st, Paramount Skydance rose approximately 8% and WBD approximately 10%.