Paramount Skydance agreed Monday to settle with California and 11 other states that sued to block its $110 billion acquisition of Warner Bros. Discovery, Inc.
The deal reportedly includes a "new board for CBS News and CNN to ensure editorial independence" as well as a $30 million penalty—90 percent of which would go to the company's employees—for each movie Paramount fails to release as part of its promise to produce 30 films per year, according to CNBC. The studio will release 30 films in its first two years and 32 in the following three years. Additionally, at least 20 percent of its annual theatrical releases must each have budgets over $50 million. If it fails to meet the targets, Paramount would be forced to divest its 49 percent stake in Miramax Films. The agreement includes $9.5 million per year for workforce training and career development and for film programs and community arts organizations. Paramount will also increase its annual spending on domestic film production by at least $300 million.
