Paramount settled lawsuits brought by 12 US states Monday, paving the way for David Ellison’s $110 billion takeover of Warner Bros. Discovery.
The states had argued that the acquisition would give Paramount too much control over the movie and cable TV industries. The deal provides certain editorial protections for CBS and CNN, as well a commitment to release 30 films annually. It also staves off the possibility that Paramount would have left California, easing concerns of local politicians and unions.
But the deal’s opponents are still skeptical, with California’s attorney general, who led the settlement efforts, acknowledging, “I don’t think these two companies should merge.” The merger, now expected to close in October, will create one the world’s largest entertainment companies.
