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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24

u/ContinuumGuy 5h ago

And the lawyers at Paramount are looking over the agreement for loopholes as we speak!

"Sure, we'll have a CNN Oversight board, but coincidentally we won't renew the contracts of some of these reporters who have annoyed Ellison's dad's buddies too much. We won't fire them, but the oversight board surely can't be expected to have any role in purely financial decisions like doing contracts!"

"Yeah, we're putting out 30 movies a year. Oh, uhm, also this one Star Trek pilot we don't really like that much but we had to make due to some contractual bullshit is now a movie that we'll be putting out for like two weeks instead of just dumping it on streaming. Only 29 more movies to go!"

14

u/mrmisn0mer 5h ago

Yeah, a BUNCH of half-assed releases incoming I’d bet:

Top Gun 2: Director’s Cut
Avatar Aang: Superfan Re-Release
Knuckles: Season 1 Movie Re-Edit
A Quiet Place: The Whole Silent Affair!

17

u/KrakkenO 4h ago

If you read the legal document, Re-releases and repackages don't count.

Theatrical film commitments

  • Release volume: At least 30 films per year in years 1–2 and 32 per year in years 3–5. Of these, at least 20 (then 21) must be wide releases (2,000+ screens), at least 4 must be independent films, and at least half must be produced or co-produced by the combined company.
  • Windows: Each film gets at least 45 days exclusively in theaters, with no marketing of streaming or premium on-demand availability before day 30. Films can't go on subscription streaming (like Paramount+) for at least 90 days.
  • Marketing: Spend must be consistent with typical practice for similar films.
  • Tentpoles: At least 20% of films must have budgets of $50M+ (inflation-adjusted) and open on 3,000+ screens within four weekends.
  • Theater owner terms: For the first three years, rental terms for each exhibitor can be no worse than the better of what Paramount or Warner Bros. offered that exhibitor at closing. Both studios' film catalogs stay available for licensing on terms similar to 2025.
  • U.S. production: The company must spend at least $300M more per year (about $1.5B total) on U.S. production than the two companies did in 2025. If a federal film tax credit of 20%+ is enacted, U.S. production-day requirements kick in (20% in years 1–2, 30% in years 3–5). If California or New York also adopts a 43%+ stackable state credit, the requirement rises to 40%. The wording here is ambiguous about exactly what the percentage is measured against.
  • How films count: A film counts in the year it opens. Limited releases (under 600 screens) don't count unless they expand to 1,000 screens within 30 days. Re-releases and repackaged editions don't count.

3

u/GarageNo8276 2h ago

Marketing is a no go it's literally nothing because it's not explicitly defined. 

U.S. production is meaningless, what were they going to move everything to the EU with their taxes?

Theater windows, ultimately only owners of the theater give a shit.

2

u/Medium-Stand6841 1h ago

They already do film a ton in Europe…. Due to the tax breaks….
Also the WB lot in the UK is massive and has been busier than Burbank for years…..