1 week ago
California May Seek Cable Sales Before Paramount-Warner Merger Approval
Paramount wants to buy Warner Bros.
Discovery for $110 billion.
California and 11 other states are trying to stop the deal.
They worry it could reduce competition in movies and cable television.
They say this might hurt theaters, television distributors, consumers, and workers.
California Attorney General Rob Bonta may ask Paramount to sell some cable channels.
He may also ask Paramount to keep its movie studio separate from Warner Bros.
Officials from California and Paramount will discuss possible solutions on Monday.
Paramount says the combined company could make more movies.
The states say Paramount's promise to release 30 movies each year may not be enforceable.
California Attorney General Rob Bonta may seek Paramount's divestiture of some cable channels.
Bonta is also expected to request safeguards keeping Paramount's movie studio separate from Warner Bros.
California and Paramount officials are scheduled to discuss potential settlement terms on Monday.
California and 11 other states sued to block Paramount's $110 billion Warner Bros. acquisition.
The states cite competition concerns, while Paramount says the merger would enable greater film production.
- Who
- California Attorney General Rob Bonta, Paramount, Warner Bros. Discovery, and California and 11 other states.
- What
- California may seek cable-channel divestitures and a separation commitment before approving Paramount's proposed acquisition of Warner Bros. Discovery.
- Where
- California and the United States; the specific meeting location was not stated.
- When
- State and company officials are scheduled to meet on Monday; the states filed their lawsuit last month.
- Why
- The states allege the $110 billion merger would reduce competition in film distribution and cable television.
California and Other States
Paramount
Competition and consumer effects
California and Other States
The states argue the merger would lessen competition in film distribution and cable television, potentially harming theaters and pay-TV distributors, raising consumer prices, and weakening wage competition.
Paramount
Paramount has said the transaction would allow it to produce more rather than less.
Film-production commitment
California and Other States
The states say Paramount's promise that the combined studios would release 30 movies a year is unenforceable.
Paramount
Chief Executive Officer David Ellison has pledged that the combined film studios would release 30 movies annually.
Possible merger conditions
California and Other States
California may seek cable-channel sales and a commitment to keep Paramount's movie studio separate from Warner Bros.
Paramount
Paramount is meeting state officials to discuss potential settlement terms, but it has not publicly commented on the reported conditions.
Key facts
- Proposed transaction
- Paramount's acquisition of Warner Bros. Discovery
- Reported value
- $110 billion
- States involved in lawsuit
- California and 11 other states
- Potential cable remedy
- Paramount may be asked to divest some cable channels
- Potential film remedy
- Paramount may be asked to keep its movie studio separate from Warner Bros.
- Paramount's production commitment
- Chief Executive Officer David Ellison has pledged that the combined film studios would release 30 movies annually
- State objection
- The states call the 30-movie commitment unenforceable
Sources
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