Paramount Skydance has agreed conditions with US state attorneys general to settle their antitrust challenge to its $110 billion acquisition of Warner Bros Discovery (WBD).
The settlement requires Paramount to keep Pluto TV, or an equivalent free, ad-supported streaming service, running for five years, Advanced Television reported on 22 September. Pluto TV, launched in 2013, is the only free streaming service either company operates.
Cable networks on the line
The agreement also deals with how Paramount negotiates carriage of its own and Warner Bros’ basic cable channels. According to Deadline, as cited by Advanced Television, it names networks that Paramount would have to sell if it fails to meet those conditions. The list includes BET and its sister channels, VH1 and Comedy Central; MTV and Nickelodeon are not on it. The exact terms of the carriage conditions were not set out in the report.
The states did not block the merger; they bargained for a free streaming service and a fallback sale of cable channels.
Regulatory path so far
In August, Advanced Television reported that progress there had been paused by legal challenges from several states. Elsewhere the deal had moved ahead. The European Commission approved it with conditions on 23 July, and the UK Competition and Markets Authority cleared it on 6 August after opening an inquiry on 9 June. UK Culture Secretary Lisa Nandy had said on 30 June that she was minded to issue a public interest intervention notice; whether she did was not reported.
The reports do not name the states that brought the case or confirm whether a court has approved the settlement.
What to watch
- Court approval of the consent decree and the publication of its full terms.
- The timetable for completing the merger once the state case is resolved.
- How the carriage conditions are applied in Paramount’s next negotiations with pay-TV distributors.
