Paramount settles with US states, clearing the way to close $110bn Warner Bros takeover

Paramount Skydance has settled with California and 11 other US states that sued to block its $110bn acquisition of Warner Bros Discovery, a source familiar with the matter told Reuters on Monday, removing one of the last major hurdles to a merger that would unite two of Hollywood’s biggest film studios, two leading streaming services and two of the largest cable-news operations under one owner.

The settlement includes the creation of independent editorial boards for CNN and CBS, aimed at safeguarding the independence of their news operations in the combined company. It also carries a $30m penalty per film for any shortfall against chief executive David Ellison’s pledge to release 30 films in cinemas each year, plus an extra $1.5bn in film production spending over five years, according to Bloomberg and The New York Times.

The coalition of 12 state attorneys general, led by California’s Rob Bonta, sued in July to block the deal, arguing it would concentrate too much power across film, television and news and push up prices. Trump administration regulators cleared the merger, and antitrust authorities in the European Union and Britain have also approved it.

California’s attorney general announced the settlement at a press conference in Los Angeles on Monday. A source involved in the talks told CNN the companies now expect the deal to take effect in early October. Shares of Paramount rose more than 5% on Monday, while Warner Bros Discovery surged more than 10%.

Sources

• Reuters: Paramount settles with US states in big step towards closing Warner Bros merger, source says (21 Sept 2026)
• CNN: State attorneys general agree to settle Paramount merger lawsuit (21 Sept 2026)
• Consequence: Paramount Reaches Settlement With States Over Warner Bros. Discovery Acquisition — citing Bloomberg, The New York Times and The Wall Street Journal (21 Sept 2026)