Paramount Skydance has reached a settlement with 12 US state attorneys general over its proposed 110 billion dollar acquisition of Warner Bros Discovery, clearing the way for the deal to proceed.
The agreement addresses antitrust concerns raised by state prosecutors, who had argued that the merger could weaken competition in the film industry and result in higher prices for consumers.
California attorney general Rob Bonta, who led the legal challenge, stressed that the settlement did not amount to an endorsement of the transaction.
“This settlement is not a vote of support for this merger,” Mr Bonta said at a press conference announcing the agreement.
Paramount Skydance settlement conditions
Under the agreement, Paramount will invest 300 million dollars a year in domestic film production. It has also pledged to produce 30 films in each of the first two years following the merger.
The company has agreed to establish an independent board intended to “ensure independent objective fact-based reporting at CBS News and CNN”, Mr Bonta said.
The US Department of Justice, Federal Communications Commission and regulators in dozens of countries have already approved the deal.
Paramount chief executive David Ellison said the company now had “complete clearance” for the merger, although he acknowledged that work remained before it could be completed.
“With both groups’ concerns now addressed, we have complete clearance for this merger and can move toward closing,” he said. “There’s still work ahead to get this deal across the finish line, but we’re excited to bring these two iconic companies together.”
The state attorneys general filed a lawsuit in July seeking to block the transaction. The Writers Guild of America also brought a case in federal court, arguing that the merger would harm competition for writers and lead to job losses in the industry.
Paramount has rejected claims that its purchase of Warner Bros Discovery would reduce competition. A trial on the states’ legal challenge had been scheduled for March 2027 in the US District Court for the Northern District of California.
Major entertainment brands to be united
Paramount owns its film studios and cable networks including Comedy Central and Nickelodeon, as well as the Paramount+ streaming service.
Warner Bros’ film studio has produced the Harry Potter and Lord of the Rings franchises. The company also owns CNN, HBO Max, TBS and TNT.
