Paramount, state AGs defend settlement over Warner merger

U.S. District Judge Araceli Martínez-Olguín questioned whether the settlement between 12 state attorneys general and Skydance-owned Paramount over its $110 billion Warner Bros. Discovery merger was reached at arm's length or amounted to collusion. California's attorney told the court the five-year deal requires the merged company to spend $300 million more annually on domestic production, produce dozens of movies yearly, and divest Miramax or certain cable channels if it misses those targets.

The hearing came after reports that Paramount CEO David Ellison threatened to move headquarters out of California if the lawsuit continued, which California says did not influence the settlement and Paramount denies characterizing as blackmail. Senator Cory Booker has asked the court for an independent public interest review, arguing the settlement ignores that the merger is anticompetitive and will cost jobs; the parties must respond by Monday. The Writers Guild separately settled with Paramount for a five-year layoff block and $17.5 million, while still maintaining the merger will damage the industry.

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