Paramount has settled lawsuits in 12 states and will continue to merge with Warner Bros.

Paramount Skydance has reached an agreement with California and 11 other states to block its merger with Warner Bros. Discovery, Inc. This is reported by Bloomberg, citing informed unnamed sources. According to them, the negotiations concluded successfully over the weekend. The agreement is expected to be announced after September 21. This will allow Paramount to complete the merger with Warner Bros., the agency writes.

According to Bloomberg sources, prosecutors in Massachusetts, New York, Connecticut and Minnesota objected most to the agreement. The California state attorney's office, which was the main initiator of the lawsuits, previously withdrew its objections. As a result, prosecutors of four states came to the conclusion that it would be inappropriate to continue the litigation without the participation of California, where both parties to the deal are located.

Under the terms of the agreement, Paramount agreed to accede to demands from states that the combined company set up independent editorial boards for CBS and CNN, which are part of Paramount and Warner Bros. accordingly. The terms of the transaction also provide for a fine for the combined company if it does not fulfill its obligation to release 30 films per year.

During the discussions, the option was considered under which Paramount would have to pay $30 million for each film that falls below this quota, writes Bloomberg. If the target was not met, the company could be required to sell its stake in Miramax. However, according to the Agency, in the final agreement of these items, most likely, will not be. Representatives for Paramount, as well as authorities in California, New York, Minnesota and Massachusetts, did not comment on the reports.

Eugene Hvostik