Sept 21 (Reuters) – Shares of Warner Bros Discovery and Paramount Skydance jumped on Monday, after a report said Paramount and California’s attorney general were in advanced settlement talks that could clear one of the final hurdles to the companies’ $110 billion merger.
Here are some more details:
• Warner Bros rose 7.9% in premarket trading, while Paramount gained 6.8%, set to add a combined $6.30 billion to their valuations if gains hold.
• The Wall Street Journal reported on Sunday that the two sides have discussed a range of concessions, including a $1.5 billion investment in production in California, a commitment not to sell either studio lot, and potential penalties if Paramount fails to honor a pledge to produce 30 movies a year after the merger.
• Other measures under consideration include selling some cable channels and creating a board to help ensure CNN retains editorial independence, WSJ reported.
• The case brought by California and 11 other states is one of the final hurdles to Paramount CEO David Ellison’s bid to combine two of Hollywood’s biggest studios into a major rival to Netflix and Disney.
• A settlement would also help Paramount avoid a $7 million daily fee it owes Warner Bros shareholders for each day the deal does not close past September 30.
(Reporting by Anhata Rooprai in Bengaluru; Editing by Devika Syamnath)
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