California Attorney General Bonta and eleven other Democratic Attorneys General are celebrating their waving the white flag in their caving and settling with Paramount regarding its $111 billion takeover of Warner Bros. Discovery.
They’re actually celebrating a WHOLE FIVE YEAR court enforceable commitment of $1.5 billion to bolster film production and a $47.5 million fund for workers impacted by the merger as well as restrictions on how the company handles cable negotiations to help keep prices competitive.. That’s a whopping $300 million a year! Paramount has said it will save $6 BILLION a year in staffing reductions alone… that’ $47.5 million is all of 0.79% of their savings… The deal to purchase Warner Bros. Discovery is $111 billion. This commitment is a whole 1.3% of that and that’s over 5 years. It’s a sliver of Warner Bros. Discovery and Paramount’s profits.
It wasn’t just a dozen attorneys general that showed their inability to play hardball. They were joined by IATSE International President Matthew D. Loeb, Directors Guild of America National Executive Director Russell Hollander, iUNA! Local 724 Business Manager Alex Aguilar Jr., International Brotherhood of Teamsters General President President Sean M. O’Brien, and Sean Astin, President of SAG-AFTRA and Duncan Crabtree-Ireland, National Executive Director and Chief Negotiator of SAG-AFTRA.
The deal also includes:
- 30 films a year — including 20 wide releases — in the first two years.
- 32 films a year — with 21 wide releases — in years three, four, and five.
- Paramount commits to release at least four independent films in each year of the commitment period.
To put this in perspective.
In 2024, Warner Bros. released 12 films in the top 200 and Paramount release 9 films for a total of 21. In 2025, Warner Bros. released 11 films in the top 200 domestic gross and Paramount released 12 for a total of 23. 2026 has 10 films by Paramount so far and 9 from Warner Bros. with another 11 still to come, currently, before the end of the year. That’s a total of 30 in 2026, so the commitment of 20 wide release films is a DECREASE from 2026 with 30 the same. There’s already 18 Warner Bros. and 12 Paramount films announced for 2027, that’s a total of 30, so their commitment is already met. 2028 already has 10 announced Warner Bros. films and 9 from Paramount, 19 of the 21 wide releases. Those numbers don’t include Warner Bros. or Paramount’s direct to video or streaming releases. The bump touted in perspective isn’t that much and has no protections after five years. To say this is a whole lot of nothing to make it seem like something is an understatement and shows how little those negotiating either understood the assignment or cared.
If Paramount fails to meet this film output requirement in any year, the company will be required to divest Miramax Studios and must pay $30 million per missed film toward the healthcare and retirement trust funds associated with the Writers Guild of America (WGA), International Alliance of Theatrical Stage Employees (IATSE), Directors Guild of America (DGA), International Brotherhood of Teamsters (IBT) and other unions, and to the National Association of Attorneys General (NAAG) for more antitrust enforcement.
Domestic Production: The $1.5 billion investment over five years also has a kicker if the company gets a U.S. federal film tax credit of at least 20%, the U.S. production would need to be increased to 20% for years one and two and 30% for the next three years from the current 5%. If a film tax credit is passed in California or New York, production investment would need to be increased to 40% of all film production being in the U.S.
California Attorney General Bonta has committed to kissing Paramount’s ass further to uncap California’s Film and Television Tax Credit.
Independent Film Fund: The company will form a fund with annual contributions of $5 million per year, for a total of $25 million. We have no doubt that money will then be siphoned into projects Paramount/Warner Bros. Discovery are involved in. It’ll be a net gain of zero.
Protection for Workers: The merged company will commit to $47.5 million in a Workforce Fund over five years for training and career development for workers fired by the merger. Paramount has stated they will have a savings of $6 billion through staff reductions alone. Workers are fucked in this one.
Cable Agreements: For five years, the negotiations for Paramount’s basic cable channels and Warner Bros. basic cable channels must be conducted independently. After five years, expect your cable rates to skyrocket or channels getting pulled. Consumers are fucked in this one.
Ongoing Monitoring: The company also agreed to appointment of an independent monitor to oversee its compliance with this agreement. We’re sure Trump and the Ellison’s friends will be taking part (or other ass-kissing individuals).
It has been reported that the board to oversee monitoring would be established within 180 days of closing, feature five individuals (established journalists active or retired with 10 years experience) and those individuals will be appointed by the company’s board of directors and feature “no more than two” “affiliated” with the same political party. If you can’t see the loopholes there and how toothless that’ll be, we don’t know what to tell you. The panel will resolves disputes over “alleged reporting bias or failure to meet agreed reporting fairness standards” as well as monitor editorial independence including from the ownership and shareholders. CNN’s already dwindling stature is getting double tapped with the buyout and then this.
This terrible deal has been blessed by lead Attorney General Bonta and the attorneys general of Arizona, Colorado, Connecticut, Massachusetts, Minnesota, Nevada, New Jersey, New Mexico, New York, Oregon and Washington.
The protection for consumers and workers and minimal and this was all about caving to Paramount’s threats in an election year.
Word came out over the weekend that while Bonta wanted to settled, the AGs of New York, Connecticut, Minnesota, and Nevada were hold outs but eventually came around late Sunday. Bonta “assured them” he’d hold Paramount’s “feet to the fire” that the company stuck to its commitments. those commitments that have been leaked are all job related and have nothing to protect the company from lurching CNN right and playing propaganda for the Trump administration like it has for CBS. David Ellison’s father Larry Ellison is part of a group that has invested in TikTok, a major source of news for younger individuals. Larry Ellison is a friend of Donald Trump, even having been in meetings regarding the January insurrection by Trump. As part of the deal to purchase Paramount, the Ellison’s Skydance pledged to eliminate diversity, equity, and inclusion (DEI) programs and establish a CBS News ombudsman position to review bias complaints. Paramount has come under scrutiny for its takeover of CBS News removing its editorial independence for a more right-wing bent calling into question is history of quality journalism. Paramount owner David Ellison appointed Bari Weiss as the head of the news service as well as a conservative to act as its ombudsman, an “internal advocate for journalistic integrity and transparency.” That move by Ellison has tanked ratings for CBS News and 60 Minutes so there’s a chance that he may think about doing the same for CNN.
California Governor Gavin Newsom has been pushing for a settlement as he still attempts to run for President in 2028. This should kill any chance he had of that, which was slim to start. His advocating for it again sides him with billionaire oligarchs and big business instead of the general American public. He again shows he’s a Republican wolf in Democratic sheep clothing. There’s a chance it kills Bonta’s future, though he’s likely hitching it to Newsom hoping to land a role in his never going to happen Presidency. The other AGs will be facing questions about their approval of the deal and how they can claim they’re pro-consumer or pro-worker protections.
Paramount needed the deal to be completed as soon as possible as the cost of it would begin to increase by $7 million a day if not closed by September 30. With the projected lawsuit from the AGs starting in March 2027, it’d have added about $1.3 billion to Paramount’s cost.
Paramount also was facing the changing tide in American politics. While the Presidency, House, and Senate are currently favorable to them, it’s likely the Democrats will take the House and Senate in November. While it’s unlikely they’d find a spine to stop the deal, the chance greatly increases if they were to.
The Warner Bros. Discovery deal also puts Paramount into massive debt with 49.5% equity take by Saudi Arabia, UAE, and Qatar, each of them facing issues due to the current war in Iran. Add in the volatile wealth of David Ellison and his father Larry Ellison, founder of Oracle who is also funding the deal. Paramount will likely at some point have to sell assets to pay down debt.
Remember, vote Blue No Matter to gain further appeasement and lack of accountability for oligarchs!
