Free speech and media advocacy groups have urged a federal judge to reject a settlement that would let Paramount Skydance complete its $111 billion merger with Warner Bros. Discovery. The groups, including Free Press and the Freedom of the Press Foundation, told the court the deal gives the states that sued “virtually nothing.” The settlement was announced by California Attorney General Rob Bonta after a judge earlier ruled the merger would likely substantially reduce competition.
Under the proposed consent decree, Paramount would commit to releasing 30 films a year and four independent films, but the groups argue those commitments are weaker than the companies’ own forecasts. Warner Bros. projected 19 films and Paramount 15 or more for 2027. The deal also creates an editorial independence board for CBS News and CNN, but members would be chosen by Paramount and report to a board chaired by CEO David Ellison. No divestiture is required unless Paramount misses film quotas, in which case it would sell Miramax and pay $30 million per missed film to union trusts and the National Association of Attorneys General.
Judge Araceli Martínez-Olguín said at a hearing that she is not a rubber stamp and has questions about whether the settlement resulted from collusion. Sen. Cory Booker has also asked the parties to explain how each provision remedies each harm alleged in the complaint. The advocacy groups’ filing said the merger would eliminate competition over films and TV programming and leave that loss of independent decision-making largely intact.