Fine of millions, every day: the battle over the sale of Warner Bros. heats up

The negotiations between Paramount and the attorneys general of 12 states, led by California, continue in an attempt to reach a compromise that would allow the acquisition of Warner Bros. Discovery. The central clause threatens a fine of about $7 million per day starting October 1 if the deal is not completed. The parties are discussing protections for CNN's independence and the sale of some cable channels.

The negotiations between Paramount and the attorneys general of 12 US states, led by California, continue in an attempt to reach a compromise that would allow the mega-acquisition of Warner Bros. Discovery. The central clause in the contract requires Paramount to pay Warner shareholders about $7 million per day starting October 1 if the deal is not completed by that date. The talks focus on measures to protect the editorial independence of CNN, especially in light of the boycott imposed by US President Donald Trump on the network. Additionally, the possibility of selling some cable channels, including Comedy Central, is being examined. The Wall Street Journal reported significant progress in the talks. The legal battle is causing anxiety in Hollywood against the backdrop of the shift to streaming and the decline of cable television. Paramount CEO David Ellison hinted that the company might leave California if no agreement is reached. California Attorney General Rob Bonta responded sharply: "If they choose to leave California after declaring their commitment to the future of Hollywood, I would see that as hypocrisy."