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Paramount/WBD merger settlement criticized by media groups

Ars Technica •
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Media advocacy groups argue the Paramount and Warner Bros. Discovery merger settlement with California offers the public "virtually nothing." The deal requires separate negotiations for basic cable channel licensing but excludes premium channels, streaming, and broadcast content. Groups say this allows the combined entity to leverage power in other offerings like a combined HBO and Showtime, or HBO Max and Paramount Plus, to raise prices.

The filing also notes the provision fails to address reduced investment in basic cable channels. California Attorney General Bonta defended the settlement, saying it ensures massive investment in domestic film production and enforceable guardrails for cable prices. He stressed it resolves antitrust concerns in every market alleged in the case.

The Writers Guild of America reluctantly settled its lawsuit after the state agreement. The settlement prohibits writer layoffs in CBS News for five years and requires $17.5 million in health fund payments. The WGA still believes the merger will harm writers but couldn't afford a solo legal battle without government backing.

Initially, Massachusetts, New York, Connecticut, and Minnesota opposed the deal but concluded the expense wasn't justifiable without California leading the effort.