Paramount, States Urge Judge to Approve Merger Settlement, Reject Booker Review Bid

Paramount Skydance and 12 state attorneys general urged a federal judge on Monday to approve their proposed merger settlement without the independent public-interest review requested by Sen. Cory Booker (D-N.J.). In filings with the U.S. District Court for the Northern District of California, Oakland Division, the companies called Booker's proposed review "without legal basis," noting it is modeled on the Tunney Act, which governs Justice Department antitrust settlements, not state agreements. The decree, negotiated after two months of litigation, requires the combined company to release at least 30 films annually in theaters for two years and 32 films yearly thereafter, with a $30 million penalty per shortfall. Failure to cure within six months would trigger divestiture of a 49% Miramax stake. The agreement also establishes a compliance monitor and a board overseeing CNN and CBS News editorial independence. Paramount CEO David Ellison expects the deal to close within two weeks of approval, potentially in early October. Judge Araceli Martínez-Olguín has not scheduled a ruling.