Key insights
- Paramount and states are reportedly close to settling a dispute over Paramount's acquisition of Warner Bros. Discussions include independent content monitoring of CNN and a commitment to theatrical releases. A settlement could finalize Paramount's bid to compete with Netflix and Disney and potentially save Paramount millions in fees. Paramount shares rose nearly 7% and Warner Bros Discovery shares rose 8.4% in after-market trading.
By Jody Godoy
Sept 18 (Reuters) - Paramount and states seeking to block its $110 billion acquisition of Warner Bros could settle as soon as this weekend, with independent content monitoring of CNN among the terms under discussion, sources familiar with the matter told Reuters on Friday.
A commitment on the number of theatrical releases is also among the terms being discussed as part of a settlement, the sources said.
Paramount’s shares rose nearly 7% after markets closed. Warner Bros Discovery shares were up 8.4% in after-market trading.
The case brought by California and 11 other states is the final hurdle to Paramount’s bid to become a major rival of Netflix and Disney. A settlement this week could help Paramount avoid paying millions of dollars in fees to Warner Bros shareholders.
A spokesperson for the California Department of Justice said potential settlement talks are confidential. "We cannot confirm or deny whether settlement talks are occurring or their alleged substance," the spokesperson said.
Paramount declined to comment.
Lawmakers have criticized Paramount CEO David Ellison for tailoring news coverage at Paramount-owned CBS News to favor President Donald Trump. Critics fear how he would manage Warner’s CNN once it comes under his ownership.
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