9:00 AM Saturday UPDATE: Among the concessions under discussion is the formation of an editorial board or monitor that would independently oversee CNN, ostensibly to protect the news network from becoming too friendly with the Trump Administration.
Original Early Morning Story...
Paramount is reported to be in advanced settlement talks with California officials to resolve the antitrust lawsuit blocking its $81 billion acquisition of Warner Bros. Discovery, according to The Wall Street Journal citing people familiar with the matter. A deal is not guaranteed.
The company has warned it is prepared to start moving operations out of California as soon as Oct. 1 if it cannot reach an agreement with the states, with Tennessee viewed as a likely destination. Negotiators have discussed compromises that would fall short of an immediate full combination, including a period in which Paramount would operate the two companies’ movie studios separately, the people said. Bonta has said he wants structural remedies rather than conduct promises alone, while Paramount has previously offered behavioral commitments such as theatrical-release guarantees.
The talks are aimed at clearing the last major legal obstacle to a combination that would unite two of Hollywood’s oldest studios, the Paramount+ and HBO Max streaming services, and dozens of television networks.
Twelve Democratic-led states, headed by California Attorney General Rob Bonta, sued in July to block the transaction, arguing it would concentrate too much power in theatrical films and cable channels.
Paramount is under growing financial pressure to close. Its agreement with Warner includes a “ticking fee” of about $650 million a quarter, or roughly $7 million a day, that begins accruing next month if the deal has not closed.
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| Rob Bonta, David Ellision |
Talks remain fluid, and earlier sessions collapsed after Bonta accused the company of leaking and misrepresenting discussions.
If completed, the deal would put Paramount Chief Executive David Ellison in control of franchises including DC superheroes and Harry Potter, and add CNN, Cartoon Network and Food Network to a portfolio that already includes MTV, Comedy Central and CBS. A court-supervised settlement conference with California and the Writers Guild of America is separately scheduled for mid-October, with an antitrust trial slated for March if no agreement is reached.