Paramount‑Warner Must Drop 30 Movies or Pay $30M, Threatening Miramax

California’s Attorney General Rob Bonta announced that the pending merger between Paramount and Warner Bros must produce at least thirty feature films each year. If the combined company falls short, it faces a forced divestiture of its Miramax studio.

The settlement also imposes a monetary penalty for every missing film, with the majority of the fine earmarked for workers.

The agreement was unveiled during a morning press briefing by Bonta, who highlighted two distinct penalties. “Two penalties, they fail to meet the requirements of those films, one is a structural one, a divestiture, if you will of a corporate asset of Miramax. That is one of the penalties,” he said.

The divestiture would require the combined entity to sell all direct and indirect ownership interests in Miramax within twelve months of the theatrical cure period’s expiration.

Bonta added that the merger must also produce a specific mix of films: four independent titles annually and at least twenty percent blockbusters. He framed the settlement as a safeguard against the decline in output seen after other large media mergers. “This agreement is the opposite of Disney‑Fox,” Bonta said this morning.

“All the things we saw with the Disney‑Fox merger: a massive decrease in film production, in film output; less films being made. This doesn’t just guard against that, and protect against the downside. It locks in a massive upside.

Thirty films , 32 films a year for the next three with requirements for what kind of films those are.”

## Background & Context

Miramax has long been a relatively small part of Paramount’s portfolio. The studio was founded by Paramount but is currently majority-owned by Qatar‑based beIN Media Group, which holds 51 percent of the company. In 2020, ViacomCBS paid $150 million for a 49‑percent stake, bringing its total investment to $375 million.

That same year, the company committed $225 million—$45 million . The deal was originally negotiated in 2019 by Paramount’s then‑chief Jim Gianopulos.

Miramax’s output has varied. Paramount’s highest‑grossing movie of the year is a Miramax co‑production, *Scary Movie*, which earned $231.9 million worldwide and $108.2 million domestically. The studio also hosts Netflix’s top‑viewed series worldwide, *The Gentlemen*.

However, no other Miramax titles are currently scheduled for theatrical release by Paramount .

Unlike many studios, Miramax often raises funds through foreign sales and independent financing, then sells distribution rights to the highest bidder. Recent projects include Amazon MGM Studios’ *The Beekeeper* and *Supermax*, Focus Features’ 2023 Oscar winner *The Holdovers*, and Universal’s *Bridget Jones: Mad About the Boy*.

Peacock handled domestic distribution for that film, which earned $140.4 million overseas.

## What People Are Saying

The settlement’s language reflects a broader debate over how to balance antitrust concerns with creative output. Critics point out that Miramax is not a massive revenue driver for Paramount and question the practicality of divesting an asset that the merged company may only partially own.

One commentator noted, “This is such an astonishing cave. No real structural remedies. Divesting a company they don’t even own half of.

Unreal.” Others argue that the requirement to produce independent films and blockbusters could spur fresh content and prevent the consolidation’s historic slump in output.

Bonta’s comments also touch on the financial side of potential penalties. “For each film that they fail to make, should they fail to make any, $30 million is paid to be split three different ways, but 90% of it goes to workers,” he said.

The figure underscores the state’s intent to reward employment in the industry while punishing failure to meet production goals.

The proposed penalties have been compared to other regulatory approaches. Bonta contrasted the new settlement with the Disney‑Fox merger, implying that those deals often resulted in fewer films. By setting a hard floor of 30 films , the state seeks to lock in an “upside” that could counteract historical declines.

## What Happens Next

If Paramount and Warner Bros fail to meet the film‑output threshold within the designated timeframe, the settlement requires them to divest Miramax. The sale must occur within twelve months of the theatrical cure period’s expiration and to a bona fide acquirer approved by California’s State Committee.

The approval process cannot be unreasonably withheld or delayed, ensuring a swift transition. Additionally, the combined entity is prohibited from reacquiring any interest in Miramax during the commitment period.

Should the studios fall short on the annual film count, they would also trigger a monetary penalty of $30 million . The fine would be distributed in three parts, with 90 percent allocated to workers, reinforcing the state’s emphasis on employment.

The merger’s remaining conditions remain unchanged, and the studios retain the ability to exit California once the deal closes. Nevertheless, the new provisions make compliance with film‑output requirements a critical factor for preserving Miramax’s status as part of the merged entity.

California’s Attorney General has set a definitive production benchmark for the Paramount‑Warner Bros merger, tying it to both a potential divestiture of Miramax and substantial financial penalties.

The outcome will hinge on the studios’ ability to deliver at least thirty films annually while meeting the stipulated mix of independent and blockbuster titles.