Paramount pledges at least 30 movies a year after WBD merger, under new settlement

Paramount has reached a settlement with 12 US states that had sued to block its $110 billion merger with Warner Bros. Discovery (WBD). As part of the deal, the studio has agreed to spend at least $300 million more on film and TV projects produced in the US and to release a minimum of 30 movies annually once WBD is absorbed.

California Attorney General Rob Bonta said the settlement is designed to maintain consistent film output and domestic production while protecting workers' livelihoods. SAG-AFTRA president Sean Astin and chief negotiator Duncan Crabtree-Ireland thanked Bonta but noted the terms represent only the lowest standards employers must meet.

Five-year guardrails

The merger, which has not yet been officially finalized, would bind the combined company to specific rules for only five years. In the first two years, Paramount/WBD must release 30 films annually or pay $30 million per film shortfall into healthcare and retirement funds managed by Hollywood's major unions. Over the following three years, the annual requirement rises to 32 films. Failure to meet these terms during the five-year period would force the company to sell its 49 percent stake in Miramax Studios to a competitor.

Over the past six years, Paramount has averaged 15 films annually while WBD has averaged 17, meaning the new target would represent a significant increase for both studios individually. However, the settlement does not require the merged company to produce all the films itself — it can also meet its quota by distributing movies made by other production houses. Additionally, only 20 percent of released films are required to have production budgets exceeding $50 million, leaving room for less ambitious projects to fill out the slate.