The end of the Paramount-Warner Bros. Discovery saga could finally be near.
Paramount is reportedly in “advanced settlement talks” with California Attorney General Rob Bonta that would see the company agree to certain concessions as condition to completing its $110 billion acquisition of Warner Bros. Discovery, according to Jessica Toonkel in The Wall Street Journal.
Per Toonkel, Paramount leaders are “eager to close the deal,” both so the company can move forward with its plans for the combined entity, and to avoid the $7 million daily ticking fee it would owe Warner Bros. Discovery shareholders beginning next month should the acquisition not be finalized by then.
The news comes as Paramount has reportedly threatened to move its operations from California, potentially as soon as Oct. 1, should a settlement not be reached.
One term of the proposed settlement agreement, which is not final, would see Paramount operate its movie studio as a separate entity from the storied Warner Bros. studio, at least for a period of time, before the businesses can be combined. California, and the 11 other states joining it in the lawsuit, allege the combination of the two movie studios would create too much concentration in the market for theatrical films.
Paramount’s acquisition of Warner Bros. Discovery would also include the Warner-owned cable networks, including the TNT Sports properties, which could potentially create a portfolio of live sports rights second only to that of ESPN. The unified sports entity would hold rights to the entire NCAA Men’s Basketball Tournament, five College Football Playoff games (sublicensed from ESPN), NFL, MLB, NHL, UFC, NASCAR, and much more.
Last month, reports surfaced that Bonta was set to ask Paramount to divest in “some” cable channels as condition for a settlement, though those reports caused tensions to flare between the two sides and Bonta subsequently cancelled a scheduled meeting. It’s unclear if the divestment of cable networks is still a consideration for a settlement.
About Drew Lerner
Drew Lerner is a staff writer for Awful Announcing and an aspiring cable subscriber. He previously covered sports media for Sports Media Watch. Future beat writer for the Oasis reunion tour.