PSKY
WBD
The price of getting to yes
Paramount Skydance is reportedly in advanced settlement talks with California attorney general Rob Bonta as it tries to clear a major hurdle for its roughly $110 billion bid for Warner Bros. Discovery. And because nothing says “please approve our mega-merger” like a billion-dollar olive branch, the package under discussion may include a $1.5 billion investment in California film and TV production.
Hollywood politics, but make it expensive
The talks reportedly go beyond just cash. Paramount is also said to be promising it’ll stay in California and keep its studio lots there, after floating a possible relocation earlier in the saga. Other ideas on the table include:
- penalties if Paramount misses its promise to produce 30 movies a year after the deal closes
- a possible sale of Miramax if those penalties kick in
- selling off some cable channels
- creating an editorial board to protect CNN’s independence
That’s a lot of moving parts for a deal that already looks like it’s been stuck in the penalty box for ages.
The other states want their turn too
California may be closest to a deal, but the rest of the coalition isn’t done bargaining. New York wants job guarantees for Warner Bros. employees, while Connecticut is pushing for stronger editorial safeguards for CNN and CBS News.
And if you’re wondering why this matters to shareholders, here’s the short version: the merger has already been delayed, the trial is set for March March 2, 2027, and the ticking fees could top $1 billion by then. In other words, every month of legal limbo is expensive enough to make even a mega-deal wince.
Big picture
Paramount keeps saying the merger will make it stronger against giants like Netflix and Amazon. Maybe. But first it has to survive the courtroom, the regulators, and the state AGs who are effectively asking: “Cool plan. What’s in it for our voters?”