Nevada Attorney General Aaron Ford said he was satisfied with a settlement reached between Paramount Skydance and a coalition of a dozen states that had filed an antitrust lawsuit to stop the media company’s mega-merger with Warner Bros. Discovery.
“I supported the deal. We have some great protections for movies and for theaters and for workers and for the independence of the media,” he told the Las Vegas Review-Journal Monday evening. “And those are important things for all of us in the state.”
Led by California, 12 attorneys general — including Ford — and the Writers Guild of America West sued to block the $110 billion merger over the summer. The complaint alleged that it would stifle competition, diminishing consumer choice.
The acquisition cleared a major hurdle earlier Monday when the plaintiffs agreed to drop the case in exchange for concessions, including investment in the film industry, worker protections and a minimum number of movies the studios have to produce.
Paramount and Warner Bros. agreed to maintain their Hollywood production lots, the court filing shows.
‘Improve lives of Nevadans’
“Let me be clear: This settlement is not a vote of support for this merger,” California Attorney General Rob Bonta said in a statement. “But we believe this settlement, which resolves our antitrust concerns in every market alleged in our case, protects competition and consumer choice, and puts workers’ needs, concerns, and futures first, is the best course of action.”
The settlement also resolved a demand Paramount made last month that could have held individual plaintiff states liable for hundreds of millions of dollars if the suit hadn’t gone their way.
The conglomerate had asked a judge to impose a $1.86 billion bond on the plaintiffs while the case proceeded to trial next year. The request was backed by the Department of Justice.
Bonds can be requested in civil cases to protect a defendant from suffering financial harm from a wrongfully issued injunction. The court hadn’t ruled on the motion.
Asked how confident he was about winning the antitrust lawsuit, Ford noted a settlement was always a possibility.
“We’re always open to opportunities to come to agreements on things that are going to improve the lives of Nevadans,” he told the Review-Journal, “and this is one of those that I think does.”
Paramount spokespeople did not return a message Tuesday seeking comment on the deal.
If the merger is ultimately approved, Paramount agreed to release 30 films a year, with 20 of them to receive wide releases during the first two years.
Those figures would increase to 32 and 21 during the next three years, according to Ford’s office. It would also be required to release at least four independent films during the time frame.
Paramount would have to divest from Miramax Studios if it fails to meet either annual requirement and be required to pay $30 million in retirement and health care funds for unionized employees for every missed film, Ford’s office noted.
For the next five years, Paramount Skydance and Warner Bros. Discovery will have to negotiate their cable TV channels for both merged entities independently and continue to offer free streaming options, the office said.
The merger would put CNN under the Paramount umbrella. Paramount already owns CBS News.
“Additionally, the company agrees to a News Editorial Independence Board to help CNN and CBS maintain editorial independence,” Ford’s office said.
Contact Ricardo Torres-Cortez at rtorres@reviewjournal.com.
