Judge presses Paramount-WBD on settlement calling it 'virtually nothing' for public
Free speech and media groups urge a federal judge to reject a California-brokered deal clearing Paramount's $111 billion merger with Warner Bros. Discovery.
What to know
- The settlement drops the states' original demand for an injunction blocking the $111 billion merger in favor of non-binding conduct commitments, including a pledge to release 30 movies a year.
- Judge Martínez-Olguín, who had already found the merger likely anticompetitive, is not treating the deal as a formality and wants assurance it wasn't the product of collusion.
- Sen. Cory Booker and a coalition of press-freedom and civil rights groups argue the settlement fails to address the lawsuit's core claims of reduced competition and job losses.
- California AG Rob Bonta had previously called similar behavioral remedies unenforceable before agreeing to a settlement built on them.
“The proposed consent decree requires no divestiture as a condition of closing. Instead, it relies on conduct commitments that leave important pleaded harms unaddressed even when the combined company fully complies”
League of United Latin American Citizens, Civil rights organization, court filing · Ars Technica ↗
Araceli Martínez-Olguín US District Judge, Northern District of California
Rob Bonta California Attorney General
Cory Booker US Senator (D-N.J.)Paramount Skydance Merging companyCommittee for the First Amendment, Free Press, Freedom of the Press Foundation, Future Film Coalition, International Documentary Association Advocacy coalitionLeague of United Latin American Citizens Civil rights organization
How it unfolded 2 developments, newest first · click a bar or a number to jump articlesposts
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Advocacy coalition and LULAC tell judge settlement gives public 'virtually nothing'
The Committee for the First Amendment, Free Press, Freedom of the Press Foundation, Future Film Coalition and International Documentary Association, joined separately by the League of United Latin American Citizens, filed briefs arguing the settlement requires no divestiture and leaves the merger's alleged anticompetitive harms unaddressed.
“virtually nothing…”
— Coalition of media and free speech groups -
first by Mastodon, 22h ago · also Ars Technica
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Judge presses parties on settlement at court hearing
At a hearing in the Northern District of California, Martínez-Olguín told lawyers she has questions and wants assurance the deal was not the product of collusion, and asked the parties to respond to a letter from Sen. Cory Booker demanding the remedies be measured against the harms the states originally alleged.
“the court isn't a rubber stamp of your agreement… I have some questions…”
— Judge Araceli Martínez-Olguín -
background
Bonta announces California settlement with Paramount — California Attorney General Rob Bonta announced a settlement with Paramount Skydance, and the other states in the suit signed on, clearing a path to close the merger.
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background
Judge rules merger likely violates antitrust law, delaying deal — US District Judge Araceli Martínez-Olguín ruled that the combination would likely substantially reduce competition, temporarily blocking the merger's completion.
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background
Twelve states sue to block the Paramount-WBD merger — States led by California filed suit alleging the $111 billion tie-up between Paramount Skydance and Warner Bros. Discovery would extinguish competition, raise prices, reduce output and lessen choice.