Abstract:
In order to advance the acquisition of Warner Bros., Paramount is negotiating with the state of California to resolve legal resistance. One of the conditions for a potential settlement is that after the deal is completed, at least 30 films will be released in theaters every year; if the target is not met, it may face a fine of US$30 million for each film missed.
Two people familiar with the negotiations disclosed the terms, but declined to be named because the discussions have not been made public. One of them also said Paramount may need to sell its Miramax stake if it doesn't live up to its commitments. However, these plans are still in the negotiation stage and have not yet become a final agreement.
This is not the first time that 30 theatrical films are released every year. Paramount has made this commitment before to win support from major theater chains for the deal. The films used to meet the quota do not have to be all produced by Paramount itself. The company may make up the number by releasing works produced by other companies.
The size of this acquisition is approximately US$110 billion. California and 11 other states, as well as the Writers Guild of America, objected to the deal. Related lawsuits argue that after the merger of two large media groups, the new company may control an excessive share of the film and television market.
Settlement talks have accelerated recently, with a number of potential concessions on the table. The plan involves investing about $1.5 billion in California film and television production, committing to retaining Paramount's studios in the state, and selling off some cable television networks. Establishing a corresponding mechanism to supervise CNN's editorial independence is also within the scope of the discussion.
A spokesperson for the California Attorney General's Office said that potential settlement negotiations are confidential and cannot confirm or deny whether negotiations are ongoing, nor can it respond to the terms stated by the outside world. Paramount also declined to comment on the details of the negotiations.
The reason why theatrical distribution commitments have become the focus is related to external concerns about market concentration and film distribution methods. California Attorney General Rob Bonta has previously expressed opposition to similar pledges, citing difficulties in enforcing them. At present, the fine of US$30 million per film, the possible sale of Miramax shares and other conditions have not been finalized, and relevant negotiations are still continuing.
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