Paramount Skydance CEO David Ellison just confirmed to employees that the company had settled the lawsuits that were holding up its deal to buy Warner Bros. Discovery.
“We have complete clearance for this merger and can move toward closing,” Ellison said in a Monday memo, which was obtained by Business Insider.
Ellison said that Paramount is “tentatively planning” to complete its $110 billion acquisition of WBD in “approximately two weeks.”
After completing this deal, Paramount will be a Hollywood behemoth that owns Paramount Pictures, the Warner Bros. studio, CBS, HBO, HBO Max, Paramount+, Pluto TV, and TV networks like CNN, TNT, TruTV, and MTV.
Paramount’s WBD deal was put on pause in July after lawsuits brought by 12 states and the Writers Guild of America, which argued that the merger would reduce competition and harm consumers.
On Monday, the plaintiffs announced that they had settled the lawsuits. Paramount agreed to boost US production spending, adhere to a minimum theatrical film release requirement, not sell its movie lot or the Warner Bros. lot, and make a few other concessions.
Paramount was in a hurry to close its deal since it had agreed to pay WBD shareholders a so-called “ticking fee” of $650 million per quarter — roughly $7 million per day — starting on October 1 if the deal didn’t close. The judge overseeing the case had scheduled the trial date for March, which meant that Paramount would have owed about $1.3 billion in fees if it hadn’t settled the lawsuits.
The uncertainty surrounding the deal had some Paramount staffers wondering about their jobs, employees previously told Business Insider.
“I know it’s created real uncertainty, and for some of you, real anxiety — that’s not lost on me,” Ellison said in his memo to employees.
Read Ellison’s full memo here:
Team, Just a few moments ago, California Attorney General Rob Bonta, on behalf of himself and 11 other State AGs, announced a settlement that clears the path forward on the lawsuit blocking our merger with Warner Bros. Discovery. We have also reached a settlement with the Writers Guild of America. With both groups’ concerns now addressed, we have complete clearance for this merger and can move toward closing. There’s still work ahead to get this deal across the finish line, but we’re excited to bring these two iconic companies together, as it means more opportunity for our creatives, production crews and employees across the business, and more great entertainment for audiences everywhere. We’re grateful to Attorney General Bonta and his fellow AGs, and to the WGA, for engaging in good faith to reach this resolution. The agreement includes a number of commitments, including 30+ films annually and expanded U.S. film production — meant to help revitalize our industry and support the people behind it, here at home. Since we launched this bid, our goal has been to build a stronger Hollywood: more stories told, greater choice for consumers, stronger competition. Combining these companies gives us the opportunity to do just that. This is an exciting moment for our company and our industry. If you’re like me, you’re in this business because you love the art of visual storytelling — the chance to entertain, unite and inspire the world through extraordinary stories. Together, Paramount and WBD can do more of that, for audiences everywhere. And we can’t wait to get started. I know you have questions about what happens next – your role, your team and how we will work day to day. We don’t have all the answers yet, and I won’t pretend otherwise. We are tentatively planning to close in approximately two weeks. That said, closing is really just the starting line. Bringing two companies this size together takes time, and we’ll share information as it becomes available. In the meantime, if you have questions or concerns, please visit the Integration Hub, reach out to your manager or HR representative, or email internalcomms@paramount.com. Thank you for your patience, commitment and hard work throughout this process. I know it’s created real uncertainty, and for some of you, real anxiety — that’s not lost on me. Our people are what make this company one of the best in the world, and I’m truly grateful for your dedication and support. I’m confident we’re going to build something special together in the years ahead. Let’s go! David
Read the full article here
