Paramount reaches settlement, clearing way for Warner Bros. merger [Updated]

[Update 3:20 pm]: The Writers Guild of America also shared the terms of its settlement with Paramount. Per Deadline, the guild achieved $17.5 million to be paid to the guild health fund along with a promise of no writer layoffs at CBS News Broadcast for five years. Still, the concessions are not what the writers had really hoped for, which the guild acknowledges in its statement: “We continue to believe the merger will cause damage to writers and the industry at large. Now that the Attorneys General have settled with Paramount, however, as a nonprofit, the WGA must contend with the reality of forging ahead alone, with no backing from government enforcers, with a complex antitrust lawsuit that would cost millions of dollars to pursue through trial.” 

[Original story]: The Paramount-Warner Bros. merger is set to move forward, reports Bloomberg this morning. Over the weekend, the four states that had been holding out on a settlement deal—New York, Massachusetts, Minnesota, and Connecticut—determined that the expensive legal battle would not be worthwhile without California’s leadership. More details are expected to be announced today. 

The holdout states did manage to get a couple concessions, even if they were unsuccessful in stopping one of the biggest mergers in history. Per Bloomberg, the current deal confirms that CNN and CBS will have separate editorial boards, which will mercifully keep Bari Weiss’ (very full) hands off another news network. If the combined company fails to theatrically release 30 films per year, it could be on the hook for $30 million per film, and could be forced to sell its stake in Miramax. 

The settlement isn’t totally official yet, but Paramount likely is keen to get a deal done before October 1, when it will be forced to start paying Warner Bros. shareholders a ticking fee of $7 million per day. We’ll update this post as more information becomes available.