Topline
Paramount Skydance is seeking a settlement with the group of states that are attempting to block its acquisition of Warner Bros. Discovery, according to a Friday statement, urging an arrangement after the merger received approval from dozens of countries worldwide.
Paramount’s merger with WBD has been approved in dozens of countries worldwide, though it still faces legal challenges in the U.S.
Photo by Justin Sullivan/Getty Images) (Photo by Justin Sullivan/Getty Images
Key Facts
Paramount said in its statement that the “better path” as opposed to continuing litigation, “would be to resolve this through a settlement that would serve the interests of workers, consumers and the consumers in each of the 12 states.”
Paramount accused the 12 state attorneys general suing it of inflicting “harm without benefit to their own constituents.”
The legal challenge seeking to block the acquisition is the largest hurdle left in Paramount’s plan to acquire Warner Bros., which has won approval from regulators in 68 countries.
The lawsuit led by California Attorney General Rob Bonta caused Paramount last month to delay its acquisition until 2027, which could cost the company hundreds of millions or potentially billions of dollars.
Forbes has reached out to Bonta’s office for comment.
Crucial Quote
“While we remain confident that the law and the facts are on our side, we have offered commitments and concessions and remain open to working constructively with the State AGs to find a path forward in the interest of our employees and the creative community in California and across the world – just as we have with the regulators in 68 countries worldwide,” Paramount CEO David Ellison said in the statement.
Key Background
The $110 billion deal was announced in February, with Paramount besting Netflix in a bidding war for Warner Bros. Paramount has to pay a $0.25 per day “ticking fee” per share to Warner Bros. shareholders each day if the agreement is not closed by Sept. 30. If the deal’s completion drags on to June 2027, it could cost Paramount over $1.9 billion. The multi-state coalition suing Paramount has accused it of violating antitrust laws and attempting to remove market competition in a move they believe could drive up prices for consumers’ cable bills and movie tickets. A federal judge temporarily blocked the merger in June.
Further Reading
Paramount Delays Warner Bros. Discovery Merger: Why The Decision Could Cost It Big Time (Forbes)