Studio Paramount will be obliged to pay a fine for films not released in theaters

Negotiations on an agreement between Paramount Skydance and the authorities of the US state of California regarding the acquisition of Warner Bros. Discovery includes a $30 million fine for each film if the company fails to meet its commitment to release 30 films a year in theater rentals. It's from sb.by.

As noted by RIA Novosti, Bloomberg, citing sources familiar with the discussions, reported:

- If the company doesn't keep its promise to show 30 movies a year in theaters... Paramount will have to pay $30 million for each film that is not released.

Negotiations on the deal have accelerated in recent days, but final terms are still unknown.

In June, the US Department of Justice approved a deal to merge the media company Warner Bros. Discovery (WBD) with Paramount Skydance.

In December, Netflix announced the purchase of Warner Bros. Discovery for $83 billion Soon after, Paramount Skydance announced that it would acquire Warner Bros. Discovery on more favorable terms — for $ 108 billion, but the Board of Directors of WBD then recommended shareholders to reject the offer.

In late February, Netflix refused to buy WBD after the company announced that the board of directors studied a new merger proposal from Paramount, recognizing it more profitable than the offer from streaming. At the same time, Reuters added that Paramount acquired WBD for $110 billion. Paramount Pictures will release a new version of the horror film “Nightmare on Elm Street”