California AG to ask Paramount divest from 'some' cable channels to settle antitrust lawsuit
California's attorney general will meet with Paramount CEO to request divesting some cable channels as a condition to settle the antitrust lawsuit blocking its Warner Bros. Discovery merger.Summary
California Attorney General Rob Bonta, leading 11 other states in an antitrust lawsuit, plans to meet with Paramount CEO David Ellison to demand the company divest some cable channels and keep its studio separate from Warner Bros. Discovery as conditions to settle the lawsuit blocking the $110 billion merger. The states argue the merger would create "too much concentration" in the cable network market. Paramount faces significant financial pressure, including a $650 million per quarter "ticking fee" starting October 1st if the deal isn't completed, potentially rising to over $1 billion if the case goes to trial next spring. While cable sports networks like CBS Sports Network and TNT Sports are mentioned as possible divestiture targets, analysts suggest scripted entertainment networks such as Showtime, BET, MTV, or Comedy Central may be more likely targets. A resolution is unlikely from Monday's meeting, with sources indicating significant ground is unlikely to be made.
(Source：Awful Announcing)