Report: AEW Partner WBD Moves Closer To Merger As Paramount Settles With Opposition

Paramount has reportedly reached a settlement with California and other states suing to block its proposed acquisition of Warner Bros. Discovery.

It was only in December last year that Netflix announced it would be acquiring the Warner Bros. half of the company, with Discovery Global due to become its own thing once more. Then Paramount entered the discussion, supplanting Netflix with a deal to acquire WBD in its entirety, but the agreement has since struggled to find a close. 

Regulators in nearly 70 jurisdictions approved the acquisition, but 12 state attorneys and the Writers Guild union sued to to block the deal with a trial date set for March, postponing it until further notice, alleging that it would violate antitrust laws. 

Though, according to Bloomberg, talks for a settlement began over the weekend after four states conceded, paving the way for the $111 billion merger to be completed. Paramount had made offers in recent weeks to try and settle the suits, including promises to release 30 films a year in theaters and increase the production of TV shows. 

California Attorney General Rob Bonta, leading the state coalition, had said he preferred structural changes rather than behavioral remedies that are hard to enforce. 

The settlement is reportedly expected to be announced later today.

The report states that state lawyers worked all night on the agreement, with Massachusetts, New York, Connecticut, and Minnesota all holding out on a possible settlement before coming to the conclusion that the expense of the legal battle would be unjustifiable without California leading the charge.

The states that held out longer secured independent editorial boards for CBS and CNN as part of the deal. And the terms are said to include a financial penalty if the company fails to deliver on its promise to distribute 30 films per year in theaters. 

Those discussions included Paramount having to pay $30 million for each film that falls short of that goal, and it could also be forced to sell its stake in Miramax if the target is unsatisfied.

If final terms are approved, the settlement looks set to spare Paramount late fees of $7 million per day beginning on October 1.

Representatives for Paramount, California, New York, Minnesota, and Massachusetts had not responded to requests for comment at the time of writing.

WBD's future crosses over into wrestling through its media rights partnership with All Elite Wrestling. AEW has aired shows on TNT, TBS, and HBO MAX since 2019 marked the return of professional wrestling on the channels started by Ted Turner. 

While some would and have said that the Paramount deal could be a negative for the promotion, it has since been said that Tony Khan was looking forward to working with David Ellison. Nothing has ever suggested AEW's place is under threat throughout merger discussions.