The torturous tale of Paramount’s quest to acquire Warner Bros. may finally have come to an conclusion, with last Monday’s announcement of a settlement to resolve a lawsuit filed by 12 states Attorneys General to block the merger. While there are still a few grumbling voices who remain steadfast in their opposition, none seem to have the legal heft to withstand the momentum which has built to get the deal over the finish line.
Paramount and the AGs have agreed that for at least the next five years the company will keep the headquarters of both Paramount and Warner Bros. in Los Angeles and these studios will release to theatres a minimum of 30 new feature films every year. Paramount has also agreed to increase the amount it spends on U.S.-based production by at least $300 million per year for the upcoming five-year period, which could increase if the pending U.S. Federal legislation is passed to provide additional tax credits for monies spend on production within the U.S.
Paramount seems to have forced the hand of the Attorneys General to make a deal, with a key point of leverage being Paramount’s threat that it if the company could not settle the matter it would consider relocating its headquarters and operations out of California. That threat seems to have drawn the attention of California’s politicians, including Governor Gavin Newsom. What’s more, stalled progress on the merger had begun to make many in Hollywood and the wider movie industry nervous that the output from both Paramount and Warner Bros. was beginning to slow down, impacting the scope and pace of production opportunities, and the availability of new movies to exhibitors throughout the country.
