TRENTON, N.J. — New Jersey Attorney General Jennifer Davenport has joined a coalition of 12 attorneys general in reaching a settlement with Paramount Skydance Corp. to resolve a lawsuit challenging the company’s merger with Warner Bros. Discovery.
The settlement, which is pending court approval, includes a five-year commitment to increase film output, at least $1.5 billion in additional domestic film production spending, a $47.5 million fund for workers affected by the merger and restrictions involving cable negotiations.
The coalition sued in July, alleging the merger was illegal and likely to reduce competition, potentially resulting in higher prices for consumers, fewer theatrical film releases and reductions in the variety, quality and amount of content available.
“This settlement includes key concessions designed to protect consumers from hikes to cable fees and workers and local businesses from cuts to film and TV production,” said Attorney General Davenport. “We have been laser-focused on the interests of New Jersey’s working families throughout, and the agreement our multistate coalition obtained here reflects that. We look forward to generations more of films and TV shows produced right here in the birthplace of the motion picture industry.”
Under the agreement, the merged company would be required to release 30 films annually, including 20 wide releases, during the first two years. It would then be required to release 32 films annually, including 21 wide releases, during years three through five.
Paramount also committed to releasing at least four independent films each year during the five-year period.
If Paramount fails to meet the film output requirement in any year, the company would be required to divest Miramax Studios and pay $30 million for each missed film toward specified union health care and retirement trust funds, the Motion Pictures & Television Fund and the National Association of Attorneys General in support of antitrust enforcement.
The settlement also requires Paramount to spend at least an additional $1.5 billion on U.S. film production over five years compared with its 2025 spending levels. The company also committed to following through on existing development efforts, including major planned investments in New Jersey.
The merged company would establish a fund to purchase independent films, contributing $5 million annually for a total of $25 million.
A $47.5 million workforce fund would also be established over five years to provide training and career development for workers displaced by the merger. The company would be required to honor existing collective bargaining agreements and bargain in good faith with unions.
For five years, negotiations involving Paramount basic cable channels would be conducted separately from negotiations involving Warner Bros. basic cable channels. The company would also be required to continue offering a free streaming service, such as Pluto TV, and establish an editorial-independence board for CNN and CBS.
An independent monitor would oversee compliance with the settlement.
Davenport joined the attorneys general of California, Arizona, Colorado, Connecticut, Massachusetts, Minnesota, Nevada, New Mexico, New York, Oregon and Washington in securing the settlement.
