Paramount is negotiating to resolve legal obstacles related to its $111 billion acquisition of Warner Bros. Discovery.

Paramount is currently in talks with California authorities to address legal challenges regarding its acquisition of Warner Bros. Discovery. One potential settlement condition is that after the transaction is completed, Paramount must release at least 30 films per year in theaters; failure to meet this target may result in a fine of $30 million for each film short of the goal.

Two individuals familiar with the negotiations disclosed these terms but requested anonymity due to the confidential nature of the discussions. One individual also mentioned that if Paramount fails to fulfill its commitments, it may need to sell its stake in Miramax. However, these proposals are still in the negotiation phase and have not yet become a final agreement.

The requirement to release 30 films per year is not new. Paramount had previously made this commitment to gain support from major theater chains for the transaction. The films used to meet this quota do not necessarily need to be produced by Paramount; the company may also release works produced by other firms to fulfill the quantity requirement.

The scale of this acquisition is approximately $111 billion. California, along with 11 other states and the American Writers Guild, has raised objections to the transaction. The related lawsuits argue that the merger of these two large media groups could lead to excessive market control in film and television.

Recent discussions on potential settlements have accelerated, with negotiations also including several possible concessions. These plans involve an investment of around $1.5 billion in California's film production sector, commitments to retain Paramount's production facilities in the state, and the sale of certain cable networks. Establishing mechanisms to ensure the editorial independence of CNN is also part of the discussions.

A spokesperson for the California Attorney General's office stated that the potential settlement negotiations are confidential and could neither confirm nor deny whether talks are ongoing, nor respond to the reported terms. Paramount also did not comment on the negotiation details.

Reported by cnBeta.