Paramount discusses $8.1 billion investment to save Warner merger

Paramount held talks with California Attorney General Rob Bonta regarding potential concessions aimed at overcoming opposition to its $81 billion acquisition of Warner Bros. Discovery. Among the measures under consideration is an investment of approximately $1.5 billion (about R$8.1 billion) in audiovisual production within the state. According to sources familiar with the negotiations, Paramount executives and a coalition of states that sued the company to block the merger spent the weekend discussing the terms of a possible agreement. If finalized, the deal would place HBO, CBS, CNN, streaming services, and traditional film studios under the control of a single entity.

In July, twelve states led by Democrats, under Bonta's leadership, filed a lawsuit to block the transaction on antitrust grounds. The Writers Guild of America, representing screenwriters, also joined the legal challenge, arguing the merger would eliminate jobs and career opportunities for Hollywood writers. On Sunday, around two dozen protesters gathered outside the Elihu M. Harris State Office Building in Oakland, holding signs such as "Bonta Don't You Dare" and "Block the Megamerger," urging the attorney general to maintain pressure. The parties have faced mounting pressure to reach a resolution in recent months, including from California Governor Gavin Newsom, Los Angeles Mayor Karen Bass, and various Hollywood labor unions.

The proposed merger includes a "ticking fee" mechanism, requiring payments of roughly $650 million per quarter (about R$3.51 billion) to Warner shareholders until the deal closes. Paramount has also requested a federal judge to require the opposing states and the Writers Guild to post nearly $1.9 billion in collateral, which would be awarded to the company if it prevails in court. The Wall Street Journal reported the story.

Reported by Olhar Digital.