Daijiworld Media Network - New York
New York, Sep 21: Settlement talks between Paramount Skydance Corp. and California officials over the proposed acquisition of Warner Bros. Discovery Inc. include a potential financial penalty if Paramount fails to fulfil a pledge to release at least 30 films a year in theatres, according to people familiar with the negotiations.
Under the terms being discussed, Paramount could be required to pay $30 million for every film it falls short of the annual target, two people familiar with the talks told Bloomberg. The company could also be required to sell its stake in Miramax, the studio behind films including Pulp Fiction, if it fails to meet the target, one of the people said.
Paramount has previously pledged to distribute at least 30 films in theatres annually. The commitment was offered to major cinema chains as the company sought their support for its proposed merger with Warner Bros. Discovery.
Paramount could potentially meet the target by distributing films produced by other studios rather than limiting the count to movies produced by Paramount itself.
California Attorney General Rob Bonta, who has led the litigation by the states, has repeatedly expressed opposition to such remedies, arguing that they could be difficult to enforce.
Attorneys general from 12 states, all Democrats, along with the Writers Guild, have sued to block Paramount’s proposed $110 billion acquisition of Warner Bros. Discovery. The plaintiffs argue that the transaction would give Paramount excessive control over the movie and cable television industries.
Settlement discussions between the parties have accelerated in recent days, Bloomberg has reported, although no agreement has been finalised.
Other potential concessions under discussion include a significant investment in US film production. One person familiar with the negotiations said the investment could be around $1.5 billion. The Wall Street Journal previously reported that such an investment could be made in California, along with the possibility of a Miramax sale.
Paramount declined to comment on the negotiations, while representatives for Bonta’s office and the Writers Guild did not immediately respond to requests for comment.
Other potential settlement terms reported by Bloomberg include a commitment by Paramount to keep its operations in California, the sale of certain cable networks and an agreement not to negotiate new distribution arrangements for all of its channels simultaneously.
Some states involved in the lawsuit have reportedly objected to certain proposals, including the possibility of appointing an editorial monitor for CNN instead of requiring the divestiture of the news network, according to people familiar with the discussions.
The negotiations remain ongoing, and the reported terms could change before any settlement is reached.