Paramount Skydance has reached a deal with the twelve U.S. states that were standing in the way of Paramount’s planned $111 billion acquisition of Warner Bros. Discovery.
The Hollywood Reporter has all the details.
It takes the form of a five-year agreement that includes penalties for the newly merged organisation if they fail to hit their target of releasing 30 films per year.
That penalty? $30 million for each missing film towards the healthcare and retirement plans for the major Hollywood associations like the SAG.
Got to pay your Baksheesh to the guilds to get nothing done in the town that does it’s own accounting, after all. .
This remains subject to court approval.
Additionally, at least four films each year must come from independent producers and the minimum number rises to 32 films by the third year. At least 20 (and later 21) of the films must be wide releases, and at least 20% must have budgets over $50 million.
Los Angeles Movie Factory No 4 must hit its productivity targets or it is off to the gulag for them!
The deal also formalises the guaranteed 45-day theatrical window, with no SVOD window until at least 90 days. In addition, Paramount has to divest itself of its stake in Miramax and operations in California must stay, preventing them from selling the Paramount or Warner Bros. studio lots.
The terms go further. Paramount must also spend at least an additional $1.5 billion on U.S. film production over five years, establish a $47.5 million fund for training and career assistance to merger-displaced workers, and spend at least $25 million towards acquiring independent films.
But wait, there’s more!
Paramount and Warner Bros. cable networks also have to negotiate carriage agreements separately for five years. Meanwhile, they must guarantee that Pluto TV remains free.
They must also bend over and assume the position around news broadcasting, accepting an independent editorial board to oversee CBS News and CNN.
There will be an independent adjudicator to monitor Paramount’s compliance with the settlement. A judge of the change?
Surely it would be less hassle to just tell them that they could keep Warner Bros. and walk away?
