California and 11 other states have sued to stop the $81 billion merger of Paramount and Warner Bros. Discovery
Paramount Pictures is reportedly considering major concessions to win approval for its planned $81 billion takeover of Warner Bros. Discovery, as the company tries to resolve a legal battle led by California, according to the Wall Street Journal.
One proposal would see Paramount invest $1.5 billion in film and TV production across California. The company could also commit to keeping its two studio lots in the state, despite previously considering a move elsewhere.
The discussions could also include safeguards for CNN and penalties if Paramount fails to meet its promise of producing 30 movies each year. One possible consequence would be selling its interest in Miramax.
The talks come after California and 11 other states sued to stop the merger, arguing that it could reduce competition. The Writers Guild of America has separately raised concerns about Hollywood jobs.
Paramount and the states have not finalized an agreement. Meanwhile, the proposed deal continues to face opposition from some Hollywood groups and demonstrators.