Key facts
- Paramount Global and 12 states have agreed to settle antitrust litigation.
- The proposed deal would combine Paramount's streaming service with HBO Max.
- The new entity would have about 200 million subscribers.
- The merger was alleged to lessen competition in theatrical distribution and cable channel licensing.
- Paramount COO Andy Gordon expected more than $6 billion in synergies within three years of the deal closing.
Paramount Global and 12 states have reached an agreement to settle antitrust litigation concerning the company's proposed merger with Warner Bros. Discovery. The settlement averts a trial that had been slated for March.
The proposed merger would combine Paramount's streaming service with HBO Max, creating a new entity with approximately 200 million subscribers, compared to Netflix's over 325 million globally. The deal is expected to significantly alter the Hollywood landscape.
Paramount's Chief Executive David Ellison, whose father Larry Ellison is providing financial backing, has pledged that the combined company will maintain a strong output of at least 30 films annually and increase television production. Paramount COO Andy Gordon previously indicated to analysts that the company anticipates over $6 billion in synergies within three years of the merger's completion.