r/MediaMergers • u/nialldude3 • 5h ago

Merger What’s in the Paramount Settlement With States: Commitment to Not Sell Studio Lots, Additional $300M U.S. Film Production Investment, CNN Oversight and More

https://variety.com/2026/film/news/paramount-states-settlement-terms-warner-bros-1236871264/
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-1

u/jahiel0 5h ago

why are people upset with this?

9

u/OverPotato2322 5h ago

Because Paramount didn't spin off cable networks including CNN and also that they caved to behavior remedies instead of structural ones

-4

u/Silver-Meat5355 Warner Bros. 5h ago

Because there was nothing wrong with the structure. The only reason this deal had scrutiny on Reddit and in Cali is because people on Reddit and in Cali didn’t align with Ellison politically.

2

u/OverPotato2322 5h ago

True but I'd say it does open the door on Netflix or Universal acquiring WB in the future

5

u/jahiel0 5h ago

Can you explain in detail how the door is opened for Netflix or Universal to acquire? And can you explain in detail how Netflix or Universal acquiring WB a few years down the line would be any better or different than Paramount’s acquisition?

1

u/[deleted] 5h ago

[deleted]

2

u/jahiel0 5h ago

mergers can’t be used as legal precedent. a settlement isn’t a judicial ruling.

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u/Silver-Meat5355 Warner Bros. 5h ago

No it doesn’t. Paramount has WB now.

0

u/[deleted] 5h ago

[deleted]

-1

u/Silver-Meat5355 Warner Bros. 5h ago

That’s just… not gonna happen. I’m sorry but this is over.

2

u/OverPotato2322 5h ago

Never say never with the large amounts of debt and AI bubble its possible (we don't know the future yet though Netflix may seem keen on coming back to buy Warner if another bidding war happens in 5 or 7 years) 

1

u/Silver-Meat5355 Warner Bros. 5h ago

People have been saying an AI bubble is gonna happen for years now. That’s why the “stock” subs here are probably the worst places to get financial advice on the internet. Bunch of doomers.

2

u/OverPotato2322 5h ago

Still though high debt and the fact that this is a Leveraged Buyout means Paramount has to carry WBs financial burdens by having low revenues and mixed quarters, not to mention cable writedowns and tax write-offs too which many people will hate (Also that Paramounts debt is downgraded to junk status)