Protesters were seen gathering outside the studio in opposition to the recent settlement reached between Paramount and California Attorney General Rob Bonta regarding the acquisition of Warner Bros. Discovery.
The protest, headed by members of the Block the Merger coalition, had been scheduled for over the weekend as a rally to urge Bonta not to reach a settlement with the studio. Those hopes were dashed Monday morning when news broke that the merger will finally proceed. As noted by TheWrap, those opposed to the deal took issue with Paramount agreeing that editorial oversight for CBS News and CNN will be handled by an independent board editorial board appointed by the board of directors.
The majority of the rest of the deal consists of behavioral remedies, including a pledge to increase production spending in the United States by at least $1.5 billion — with further increases if a federal film tax incentive and uncapped California and New York state incentives are passed — and a pledge not to move the studio’s headquarters out of California as CEO David Ellison had previously threatened.
Paramount also pledged to release 30-32 films per year over the next five years, though only half of them have to be co-produced by the studio. TheWrap reported last month that film acquisitions were expected to be a major part of Paramount’s plan to fulfill that pledge as the studio had made hires to ramp up its distribution deals.
If Paramount falls short of that mark, the state AGs can sue for a $30 million penalty for each film below the pledged amount, though the onus would be on the AGs to enforce that penalty.
“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,” Anjuli Kronheim Katz, executive director of Committee for the First Amendment. “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, national board member for SAG-AFTRA, said during the protest she noticed a change in Rob Bonta’s demeanor leading up to the settlement.
“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, flatly said she was “sickened” with how Bonta handled the lawsuit.
“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,” she said.