The facts
California Attorney General Rob Bonta announced on Sept. 21 that Paramount Skydance had settled an antitrust lawsuit brought by a coalition of 12 states over its proposed acquisition of Warner Bros. Discovery. The states alleged that the merger would weaken competition, reduce output and raise prices. The agreement is a proposed consent decree, not a final court approval.
For the first two years, the merged company would have to release at least 30 films annually, with at least 20 wide releases. In years three through five, the minimum rises to 32 films, including at least 21 wide releases. It also requires at least four independent films each year. The settlement would create a separate independent-film fund with $5 million a year, $25 million total.
If the company misses its yearly output requirement, the proposed decree requires it to divest Miramax Studios and pay $30 million for each film below the target. California’s attorney general says payments would support health-care and retirement trust funds associated with film and television unions, plus the National Association of Attorneys General for antitrust enforcement.
These quotas sit inside a broader package: at least $1.5 billion in additional U.S. production spending over five years, a $47.5 million fund for workers displaced by the merger, separate cable negotiations for the companies’ basic channels, and an independent monitor to oversee compliance. It also creates a board intended to protect editorial independence at CBS News and CNN.
The settlement still needs a judge’s approval. On Sept. 24, U.S. District Judge Araceli Martínez-Olguín declined to rule immediately and said she wanted more information. She gave the parties until Sept. 28 to respond to a letter from Sen. Cory Booker, who asked for an independent public-interest review. The judge did not say how she would rule.
Our take
The states’ proposed antitrust remedy is a five-year production schedule with a ticking Miramax meter. Miss the output requirement and the merged company must divest Miramax and pay $30 million per missing film. Hollywood has turned merger oversight into a punch card, with a very expensive damn stamp.
