Demonstrators gathered outside a Paramount studio to protest a settlement reached between the company and California Attorney General Rob Bonta over its acquisition of Warner Bros. Discovery.
The protest was organized by the Block the Merger coalition, which had planned the rally over the weekend to push Bonta to reject any settlement with the studio. Those efforts fell short after news broke Monday morning that the merger will proceed.
Opponents of the deal have focused their criticism on a provision that hands editorial oversight of CBS News and CNN to an independent board appointed by Paramount’s board of directors.
Much of the rest of the settlement centers on behavioral commitments. Paramount pledged to increase U.S. production spending by at least $1.5 billion, with room for further increases tied to a potential federal film tax incentive and uncapped incentive programs in California and New York. The company also agreed not to relocate its headquarters out of California, an option CEO David Ellison had previously floated.
Paramount further committed to releasing 30 to 32 films per year over the next five years, though only half of those need to be co-produced by the studio itself. Film acquisitions are expected to make up a significant share of that pledge, as the studio has reportedly staffed up to expand its distribution deals.
If Paramount fails to meet the film-release target, state attorneys general would have grounds to sue for a $30 million penalty per film shortfall, though enforcement would depend on the AGs pursuing that action.
Critics Question Independence of New Oversight Board
Anjuli Kronheim Katz, executive director of the Committee for the First Amendment, argued the new editorial oversight structure lacks real independence.
“The editorial ‘independence’ board for CNN and CBS will have no independence. The people on that board will be handpicked by the Ellisons and will report to the Ellisons,” Katz said. “The settlement will be null and void if there’s a strike, or labor dispute, or an economic recession. These are hardly rarities in Hollywood, as we’ve seen the last few years.”
Frances Fisher, a national board member for SAG-AFTRA, said she sensed a shift in Bonta’s approach in the days before the settlement was announced.
“I attended the Zoom call a couple of days ago where Rob Bonta showed up, and there was something in his demeanor that I didn’t trust. He wasn’t the Rob Bonta that I’d seen speaking a couple of weeks ago,” Fisher said. “And sure enough, he freaking caved along with Newsom and Bass. I am so disappointed and pissed off with these people who are playing with us like chess pieces.”
Jane Fonda, head of the Committee for the First Amendment, said she was dismayed by how the attorney general handled the case.
“I am sickened by how Banta has sold people in the entertainment industry, as well as consumers of our creative work down the river. The terms of this settlement at this moment in our nation’s history will be extraordinarily damaging. I’m glad Ted isn’t here to witness the destruction of his unique and important creation,” Fonda said.
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