Paramount-Warner merger clears final hurdle, stocks jump 10% on 2 trillion won twist

Paramount-Warner merger enters final countdown

Deal settles antitrust lawsuits with $1.5 billion film investment over five years and a requirement to release 32 films by the 30th of this month

The birth of a media giant poised to reshape Hollywood has finally entered its countdown. The biggest obstacle blocking the merger of Paramount and Warner Bros. Discovery—antitrust litigation—has been dramatically resolved, putting all remaining procedures on track to conclude within two weeks. The market responded immediately. On the 21st, local time, the companies' stocks surged more than 10% in tandem after news of the settlement broke, underscoring investors' strong expectations.

Dramatic settlement with 12 states includes 2 trillion won investment pledge

Paramount reached an agreement with 12 state governments after a fierce tug of war, according to The New York Times and other major news outlets. The central condition is a massive capital commitment. Paramount must invest an additional $1.5 billion, or about 2.0625 trillion won, in film production over the next five years. The agreement sets out specific obligations: The merged company must release 30 new films each year for its first two years, followed by 32 a year for the next three. It also pledged to establish an independent committee guaranteeing editorial control to ensure the fairness of CNN and CBS News, addressing regulators' concerns.

The two sides had different interests, but they shared the same destination: merger. California Attorney General Rob Bonta, who led the litigation, cautioned that “this settlement does not represent full-throated support for or a blessing of the merger.” But he praised it as delivering “a strong and meaningful result” on the top priority of protecting workers' jobs. Paramount CEO David Ellison, meanwhile, enthusiastically welcomed the deal, saying, “We will build a stronger and more innovative Hollywood.” The Writers Guild of America, or WGA, which had filed a separate lawsuit, also signed the agreement after securing conditions including a five-year ban on layoffs of CBS News writers.

Launch of giant media empire nears as deadline set for the 30th

After clearing approval hurdles at the U.S. Department of Justice, the European Union and British regulators, and resolving its legal battle with state governments, the unprecedented media empire is now within reach. It would bring together Paramount+, HBO Max and major news channels. Paramount faces astronomical delay fees payable to Warner shareholders if it fails to complete the transaction by the 30th of this month. The company therefore plans to speed through the remaining merger procedures and wrap them up within the two-week window.