Paramount Skydance and attorneys general from twelve states settled their blockbuster antitrust lawsuit over the $111 billion acquisition of Warner Bros. Discovery on September 22, clearing the last major legal hurdle for a deal that will combine the catalogs and operations of two of Hollywood's legacy studios. The consent decree was filed in federal court, according to Variety.
Under the terms, the combined entity must release a minimum of 30 theatrical films annually in the first two years, rising to 32 in years three through five. At least 20 of those in each of the first two years must be wide-release titles, and at least four each year must qualify as independent films. A mandatory 45-day theatrical exclusivity window applies to all releases, with no subscription streaming permitted within 90 days of a film's theatrical premiere.
The studios' physical footprints are also protected. Both the Paramount lot at 5555 Melrose Avenue and the Warner Bros. lot at 4000 Warner Boulevard must continue operating as production facilities through December 31, 2031. The merged company has committed to investing at least $300 million more annually in U.S. film production. Failing to meet theatrical output thresholds carries a $30 million per-film penalty, paid into union health and retirement trust funds. Persistent non-compliance can trigger the forced divestiture of Miramax.
"Our shared aim was an outcome that best serves consumers, workers and — most importantly — the creative community so vital to the art of visual storytelling," Paramount Skydance chief David Ellison said in a statement.
The settlement also establishes a News Editorial Independence Board to oversee editorial decisions at CNN and CBS News, and requires Pluto TV to remain freely available throughout the commitment period. A $47.5 million workforce training fund and a $25 million indie film acquisition fund round out the terms. The deal is expected to close in the coming weeks.