Home / Business and Economy / Paramount Deal Cleared: $110B Merger with Warner Bros. Set to Close
Paramount Deal Cleared: $110B Merger with Warner Bros. Set to Close
30 Sep
Summary
- Paramount to invest $300M annually for five years in U.S. production.
- Company must release at least 30 films annually, with specific blockbuster requirements.
- Strict theatrical release windows and streaming holdbacks remain in place.
The final hurdle for the $110 billion merger between Paramount and Warner Bros. Discovery has been cleared, following a judge's approval of Paramount's legal settlement with 12 state attorneys general. This decision allows the significant deal to proceed toward its closing.
Paramount has committed to a minimum annual investment of $300 million in U.S. film and TV production over the next five years, totaling $1.5 billion. The company will also release at least 30 films theatrically each year for the first two years, increasing to 32 annually for the subsequent three years.
Further stipulations include releasing at least four independent films annually and ensuring 20% of all films are blockbusters. Paramount will maintain a 45-day theatrical window and a 90-day holdback before films can stream. Distribution for cable networks will be negotiated separately.
Paramount will establish independent oversight boards at CNN and CBS News, continuing to operate Pluto TV. The company will also honor collective bargaining agreements with Hollywood unions and make community investments, including contributions to an independent film fund and career training programs.
Failure to meet these commitments could result in penalties ranging from $30 million per film to forced divestitures of stakes in Miramax and various cable channels. The merger is expected to close in early October, approximately two weeks after the settlement.
