Insiders say the mood at CNN is “like a funeral” this week. No, not because of the asinine ban the president implemented, which CNN is robustly fighting back against. The somber mood is thanks to a different industry bombshell: the Paramount-Warner Bros. merger is going through. What was widely regarded as the last great defense began in July, when California Attorney General Rob Bonta led a coalition of 12 states in an antitrust lawsuit against the merger. Separately, the Writers Guild of America filed their own antitrust suit at the same time. It was these suits that prompted CEO David “nepo billionaire” Ellison to throw a tantrum about moving Paramount-Skydance outside of California. Well, Monday came the grim announcement that both cases had been settled. As the face of this fight, AG Rob Bonta has been trying to sell the “concessions” Paramount now has to make, but it’s clear the terms are pretty weak, including the fact that they’re only binding for five years. So Warner-owned CNN will be in Ellison’s hands as soon as early October, as will our beloved John Oliver. Jack Warner wept.
In Monday’s agreement, the states said they had secured a handful of “court enforceable” commitments from Paramount — including pledges to increase domestic film production over the next five years by spending at least an additional $1.5 billion, or $300 million per year, and commit another $47.5 million to help fund training and career development for workers displaced by the merger.
Paramount also must make good on its promise to release 30 films each year for the next two years — and 32 films in each of the three years after that. If it fails to do so, the states say it will be required to divest from Miramax Studios and pay $30 million for each missed film toward health care and retirement trust funds associated with the Writers Guild of America and other industry unions.
When it comes to cable, Monday’s settlement orders the company to negotiate deals for current Paramount-owned and Warner-owned basic channels separately for the next five years, which the states say will help keep consumer prices down. The company must also form a “News Editorial Independence Board” monitoring news operations at CBS and CNN.
Bonta said in a news conference in Los Angeles the settlement was about “protecting people’s careers, the lives they’ve built here in California, the livelihoods their families rely on,” while maintaining it was not a vote for the merger.
…Paramount previously agreed to delay its transaction well into next year so the challenges could make their way through court. But it soon called for a settlement — notably as it looked increasingly likely that the price tag for Warner could get a lot more expensive. Paramount had promised to pay shareholders “ticking” fee compensation amounting to $7 million each day the deal was not closed past Sept. 30.
Including billions of dollars in debt, Paramount’s buyout of Warner is currently valued at about $111 billion based on outstanding shares.
This sucks. I’m too mad to be more eloquent. Though the states and WGA theoretically won guardrails to keep Ellison in check, in announcing the settlements each plaintiff still stated clearly that they think the merger is a bad idea. And remember, every one of these meager terms expires after the first five years. We shouldn’t even expect much during that window. Sure, the states demanded a “News Editorial Independence Board” and included a list of stipulations for who can serve — someone with 10+ years in journalism, no more than two from the same political party, no government workers — but guess who gets to pick these members? Ellison. And according to that New York Times op-ed he penned last month, Ellison thinks everything’s going like gangbusters over at CBS News! Also, not enough outlets are talking about the fact that by Paramount’s own account, the $24 billion Qatar, Saudi Arabia, and the United Arab Emirates invested to back the purchase of Warner gives those countries a nearly 50% combined stake in the new megamergered studio. Why do I feel like we’ve just said, “That’s all, folks!” to free speech?
PS — Someone please check in on Mark Ruffalo.
Photos credit: Kay Qiao/Image Press Agency/Avalon, Roger Wong/INSTARimages, Getty
This is BS. Our anti-trust laws need to be enforced. Although I know that won’t happen under the current administration.
…Hastening the demise of the American empire.
A dark day, consequences will be worse than we realize.
This is the most disgraceful thing. I truly don’t know what to do in November because I’m not voting for my AG but won’t vote for a republican either.
Newsom and Bonta sold out the citizens of LA and consumers nation wide. There will be mass layoffs, now with nowhere for those people to get new jobs. so our unemployment will go higher and higher and higher, and that will put a strain on our tax Base. Prices for consumers will go up and we just have no way to be negotiated because there’s no other jobs making the affordability crisis in California worse.
That doesn’t even include what will happen to all the other businesses from retail, restaurants, bars, fashion, all because this is merger. They released a study of what this merger would do and Newsom didn’t care and pushed for this!
Anti-trust laws exist for a reason and need to be enforced. We know longer live in a capitalist society it’s cronism.
To anyone thinking of supporting Gavin Newsom for president, this is what you get. He pressured Bonta into making this deal. And that is totally inappropriate since the California AG is independent of the governor. So this is a very Trump like move by Newsom. He interfered in a legal issue to push for a certain outcome. And it’s not about saving jobs since the Ellisons will implement mass layoffs over time. Excellent 👌 work, Guv! I’m sure the Ellisons are very proud of their boy.
THIS to the ONE THOUSANDTH DEGREE!! That man is bought and paid for and has no moral compass of his own. He does what his corporate overlords tell him to do. People need to wise up and stop falling for the okey doke every time a politician says something clever (which was written by a social media manager – NOT them) on Twitter. Between this and his hosting white supremacists on his podcast…when people show you who they are BELIEVE them. Newsom is just a more attractive version of Trump.
The media is pushing this chud big time. Ironic that he just destroyed what little integrity CNN has left.
Thank you for pointing this out, not that I am willing to give Bonta a pass. He should have the spine to stand up for his divisions independence and follow THE LAW. But Newsom is trash, this is the second time he screwed over the people of California for corporations and money, money that never seems to go to the citizens.
It is this type of shit that makes people feel like there is no difference between the two parties. I have been so upset about this for days. I am usually an optimistic person and think progress comes from dark times often but this has just taken any hope I had that this world will be ok and better.
It makes me wonder what Newsom has on Bonta. Because it’s clear Rob Bonta didn’t want to do this deal. That said, I understand your disappointment and frustration, but please continue to support Democrats in the certain knowledge that Republicans are far worse.
The fact that Newsom did this mess I hope means he gets his butt kicked when he tries for President in 2028. He already showed he’s not an ally of the LGBT community and now this. He’s in bed with rich people and does not give a good crap about anyone else.
Those guardrails are a joke. And this thing will be in so much debt, will they even be able to make so many movies a year? I think ellison will ruin both studios. Maybe move to tenessee after all.And cnn will become whatever is going on at cbs. A disgrace all around.
Damn, damn, damn. I’m assuming he’ll speed-run to failure but he’s already destroyed so much. I feel like I jinxed it when I said I wanted someone else in charge of WB.
Gummy Nepo will eventually make terrible creative choices and run it into the ground