Attorney General Dan Rayfield today announced a settlement with Paramount Skydance Corporation (Paramount)(open new window/tab), resolving a lawsuit brought by Oregon and a coalition of attorneys general challenging Paramount’s merger with Warner Bros. Discovery (Warner Bros.). In July, Attorney General Rayfield and the coalition sued to challenge the merger.
“We stepped up to challenge this merger to limit rising costs for working families, to preserve competition, and to protect Oregon’s film production industry,” said Attorney General Rayfield. “Today’s agreement keeps real competition in place, ensures that productions will continue, and ensures journalistic independence. That’s a win for Oregon workers and consumers.”
Today’s settlement, pending court approval,(open new window/tab) requires a five-year, court-enforceable commitment to increase film output; a minimum $1.5 billion commitment to boost domestic film production; a $47.5 million fund for workers affected by the merger; and restrictions on how the company handles cable negotiations to help keep prices competitive.
Today’s settlement includes:
An annual film release commitment. Paramount has agreed to a five-year term in which the merged company will commit to release:
- 30 films a year, including 20 wide releases in the first two years.
- 32 films a year, with 21 wide releases in years three, four, and five.
- At least four independent films in each year of the commitment period.
If Paramount fails to meet this film output requirement in any year, the company must divest Miramax Studios and pay $30 million per missed film toward health care and retirement trust funds for the Writers Guild of America (WGA), the International Alliance of Theatrical Stage Employees (IATSE), the Directors Guild of America (DGA), International Brotherhood of Teamsters (IBT) and other unions; toward the Motion Picture & Television Fund; and to the National Association of Attorneys General (NAAG) for further antitrust enforcement.
Domestic Production: Paramount has agreed to boost the merged company’s U.S. film production, spending at least an additional $1.5 billion over five years above its 2025 U.S. spending levels. This is a baseline. Currently, about 5% of Paramount’s production takes place in the U.S. If a federal film tax credit of at least 20% is enacted, U.S. production must rise to 20% of all film production in years one and two, and at least 30% in the remaining years. If a more expansive state film tax credit is also enacted in either California or New York, U.S. production must rise further, to at least 40% of all film production, instead of moving overseas.
Independent Film Fund: The merged company will form and operate a fund to purchase independent films, contributing $5 million per year for a total of $25 million.
Protections for Workers: The merged company will commit $47.5 million to a Workforce Fund over five years for training and career development for workers displaced by the merger. The company must also honor existing collective bargaining agreements and bargain in good faith with unions going forward.
Cable Agreements: For five years, the merged company must negotiate Paramount’s basic cable channels separately from Warner Bros.’ basic cable channels, preserving competition between them and helping keep prices down for consumers. The company must also continue to offer a free streaming service, such as Pluto TV, at its current level of service and quality, and must establish a News Editorial Independence Board to help protect editorial independence at CNN and CBS.
Ongoing Monitoring: The company has agreed to the appointment of an independent monitor to oversee compliance with this agreement.
Attorney General Rayfield secured this settlement alongside the attorneys general of California, Arizona, Colorado, Connecticut, Massachusetts, Minnesota, Nevada, New Jersey, New Mexico, New York, and Washington.