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Paramount Skydance has reached a settlement with California and other states that sued to block its $110 billion merger with Warner Bros. Discovery. The settlement, reported by Bloomberg News, is expected to be announced later today (Monday, September 21). This agreement removes a significant obstacle to one of the largest media mergers in history, which aims to unite two major film studios, streaming services, and cable news operations.
The settlement discussions, which took place over the weekend, involved California Attorney General Rob Bonta and representatives from other states. According to Variety, the terms include keeping Warner Bros. studio operations separate for a time and releasing at least 30 films theatrically per year. Additionally, a third-party "editorial adviser" will oversee CNN and CBS News, and Paramount has committed to a $1.5 billion investment in California productions.
Despite these agreements, some states, including New York and Connecticut, have expressed concerns. New York Attorney General Letitia James is seeking job-protection guarantees, while Connecticut Attorney General William Tong wants stronger provisions for CNN and CBS News independence. These states' reservations were reported by CNN.
The merger has faced opposition due to concerns about its impact on competition and media independence. Paramount CEO David Ellison has pledged that CNN and CBS News will remain independent. However, the merger's opponents, including some Hollywood unions, continue to express concern over the potential influence of the Ellison family, known allies of President Trump.
The merger, which also involves complex financing, is expected to take at least a week to finalize after the settlement is announced. Paramount aims to complete the deal by October 1 to avoid higher payouts to Warner Bros. Discovery shareholders.