- Paramount (PSKY) and Warner Bros. Discovery (WBD) rallied in Monday premarket trading after The Wall Street Journal reported weekend negotiations between Paramount executives and a coalition of US states seeking to block the $81 billion merger.
- Terms under discussion include a $1.5 billion commitment to California film and television production, a pledge not to sell either studio lot, enforcement tied to Paramount's 30-films-a-year pledge, and a possible Miramax divestiture if commitments are missed.
- The talks also cover a board designed to protect CNN editorial independence and the possible sale of selected cable television channels.
- No settlement is final: 12 Democratic-led states led by California Attorney General Rob Bonta filed an antitrust suit in July to block the deal, and the Writers Guild of America has separately sued to oppose it.
Quotes
“Shares of Paramount (NASDAQ:PSKY) and Warner Bros. Discovery (NASDAQ:WBD) rose in premarket trading on Monday after The Wall Street Journal reported progress in negotiations aimed at resolving legal opposition to their proposed $81 billion merger.”
“Paramount executives and a coalition of US states seeking to block the transaction held discussions over the weekend about a potential settlement, according to the report published on Sunday.”
“No final agreement has been reached, and the terms of any settlement remain uncertain.”