PARAMOUNT PLOY

The terms/timing of the Paramount settlement with state AGs was the product of shrewd Paramount contract writing. By imposing a staggeringly costly, ticking delay fee on themselves payable to Warner Brothers should the merger be delayed, and then a (clearly planned) follow-on promise by Paramount to move out of CA if the suit proceeded, the state AGs, led by the CA AG, quickly folded ahead of the manipulated deadline. Brilliant!