Buried in Print: 2 Surprises In Paramount Mega Deal

Key Takeaways:

• The Deal Expires In 5 Years
• No Requirement That PSKY Remains In California

California AG Rob Bonta “caved across the board” in a sudden Monday settlement with Paramount that handed David Ellison a clear victory, sources close to the talks say — and Bonta appeared close to tears as he announced a deal he still said should never have happened.

Players on Bonta’s side were shocked by the outcome. Sources close to the negotiations told Page Six Hollywood they were caught off guard when the settlement dropped Monday morning.

“There’s almost nothing in here with all the filings, statements, and law on their side that reflects they got anything,” an astonished insider said of the attorney general. “They caved across the board and I don’t know why. Clearly someone pressured him to do this.”

The Post’s Charles Gasparino reported that the collapse followed political pressure from Gov. Gavin Newsom, Los Angeles Mayor Karen Bass and potential governor Xavier Becerra after Ellison indicated he would leave town with the studio if no deal was reached. Ellison and Bonta also had a one-on-one meeting late last week, according to that reporting.

Bonta may have been privately unhappy as well. “When he said at the press conference that he never believed that this merger should take place — as he was announcing the merger — he looked like he was going to cry,” a source close to the situation said.

“I’m trying to understand why everything they said and filed and that the judge agreed to went out the window in the last few days. I just don’t understand it,” the exasperated insider added.

Despite months of arguments that Paramount needed “meaningful” structural remedies — typically meaning asset sales — the settlement contained virtually none. Buried in the fine print, Ellison’s agreements last only five years. After that, all bets are off.

Hours after the announcement, Ellison said: “Let me be clear: the newly merged company will be headquartered in Los Angeles. We aren’t going anywhere.” Bonta noted, however, that nothing in the settlement requires Paramount to keep its headquarters in L.A.

Around Hollywood, the mood among those who had sought to block the merger was a mix of outrage and grim acceptance — in the middle of Yom Kippur, when many in town were hours into their fasts.