Paramount negotiated several potential concessions with California Attorney General Rob Bonta to overcome resistance to the $81 billion deal (approximately R$ 437.4 billion) to acquire Warner Bros. Discovery. Among the alternatives considered is a $1.5 billion investment (equivalent to about R$ 8.1 billion) focused on audiovisual production within the state.
Sources close to the negotiations, speaking to The Wall Street Journal, reported that Paramount executives and a coalition of states that filed a lawsuit against the company to block the union met over the weekend to discuss the details of a possible agreement.
If realized, this agreement would allow for the consolidation of various assets, including HBO, CBS, CNN, streaming services, and traditional film studios, under the command of a single corporation.
Details of the Merger Opposition
Ellison dedicated the last year to attempting to buy Warner in a major merger that would expand its dominance in the entertainment sector. However, this operation faced strong opposition from both political groups and sectors of Hollywood.
In July, twelve Democrat-led states, under the direction of California Attorney General Rob Bonta, filed a lawsuit to prevent the deal based on antitrust allegations. The states alleged that the merger between Paramount and Warner would result in excessive concentration in the cinema and subscription television markets.
Furthermore, the Writers Guild of America, the union representing screenwriters, also filed a suit against the merger. The entity argues that the transaction would lead to the elimination of jobs and career opportunities for Hollywood screenwriters.
On Sunday (20), about twenty protesters gathered in front of the Elihu M. Harris State Office Building in downtown Oakland, USA, to protest the potential deal, as reported by the Journal. Protesters displayed signs such as “Bonta Don’t You Dare” and “Block the Megamerger,” demanding that the attorney general maintain pressure on the case.
Annie Leonard, co-founder of the non-profit organization Committee for the First Amendment, which advocates for freedom of expression, stated: “Nothing has changed since he presented the case.” She emphasized that “He needs to remain as firm as he was when presenting the case.”
Pressures and Financial Conditions
Both parties have been under pressure to resolve the controversy in recent months. Figures involved include California Governor Gavin Newsom, Los Angeles Mayor Karen Bass, gubernatorial candidate Xavier Becerra, major cinema chains, and various Hollywood labor unions.
The deal proposed by Paramount to Warner also includes a “ticking fee,” a mechanism that guarantees payments to Warner shareholders while the transaction is not finalized. Starting next month, these payments would be approximately $650 million quarterly (about R$ 3.51 billion), or $7 million daily (about R$ 37.8 million), until the transaction is completed.
Additionally, Paramount requested a federal judge to compel the states and the Writers Guild to provide a guarantee of nearly $1.9 billion (about R$ 10.3 billion) to contest the acquisition. This amount would go to the company if it won the litigation.