Settlement with California and 11 other states removes one of the final major legal barriers to the $110 billion acquisition
UPDATE — Sept. 21, 2026: Paramount Skydance has reached a settlement with California and 11 other states that sued to block its proposed acquisition of Warner Bros. Discovery, clearing a major obstacle to closing the approximately $110 billion transaction, according to Reuters and other reports.
The agreement resolves the states’ antitrust challenge, which had argued that combining the companies could reduce competition in film distribution and cable-channel licensing. The settlement clears the path for the merger to move forward, though the companies still must complete the transaction.
According to Reuters, the settlement includes independent editorial boards for CNN and CBS. It also includes enforcement provisions tied to Paramount’s commitment to release 30 films annually, with a reported $30 million penalty for each film below that target.
The negotiations also included a roughly $1.5 billion commitment to California-based film and television production. Earlier reported terms included commitments involving the companies’ California studio operations.
Paramount previously said it had satisfied all regulatory conditions required under its merger agreement after receiving clearances in nearly 70 jurisdictions. The state lawsuits had remained one of the principal barriers to closing.
The settlement marks a reversal from the states’ July effort to stop the transaction. California Attorney General Rob Bonta had led the coalition challenging the merger under federal antitrust law, arguing the combination would harm competition. Paramount has maintained that the merger would strengthen the combined company’s ability to compete with large technology and streaming companies.
Sources: Reuters; Paramount Skydance.
