Paramount/WBD merger conditions give the public "virtually nothing," judge told

Five free speech and media advocacy groups asked a federal judge to reject California's settlement with Paramount Skydance, which would let the company complete its $111 billion merger with Warner Bros. Discovery. The filing was submitted by the Committee for the First Amendment, Free Press, Freedom of the Press Foundation, Future Film Coalition and International Documentary Association.

The lawsuit and the settlement

In July, 12 states led by California sued to block the deal; US District Judge Araceli Martínez-Olguín found the merger would likely reduce competition substantially, and Paramount agreed to delay closing until trial. California Attorney General Rob Bonta announced the settlement this week, and the judge must approve it.

Critics: harms left unaddressed

The groups noted that Bonta himself criticized the kind of behavioral remedies now proposed, saying such conditions are "typically not enforceable in the way that we like." The states' complaint alleged the deal would "extinguish competition" and raise prices while lowering quality and choice. "Whatever the reasons for the States' about-face, neither time nor circumstance changes the fact that this merger lessens competition," the filing said.

Judge: "I have some questions"

Martínez-Olguín told lawyers at a hearing this week that "the court isn't a rubber stamp of your agreement," Variety reported, and that she wants to ensure the deal was not the product of collusion. She asked the parties to reply to Sen. Cory Booker (D-N.J.), who said they must explain "how each provision remedies each harm alleged in the complaint."

What the settlement requires

Paramount would release 30 films a year, fewer than the 19 films Warner Bros. and the 15 or more Paramount projected to investors for 2027 as independent companies, the groups said. Falling short would trigger a sale of Miramax and $30 million payments per missed film to union benefit funds and the National Association of Attorneys General. The groups also said the annual requirement of four independent films counts any movie shot from an original screenplay, even if the studio fully finances and owns it.

An "Editorial Independence Board" for CBS News and CNN, whose members Paramount would choose, would report to its board chaired by CEO David Ellison; the groups called that "constitutionally fraught." A cable condition requires separate negotiations on basic cable licensing for five years but not for premium channels or streaming. Bonta says the deal guarantees "massive investment in domestic film production" and "is not a vote of support for this merger." The Writers Guild of America settled its own suit for a five-year layoff ban at CBS News and $17.5 million for its health fund, saying it still expects damage to writers.