Paramount Cuts Deal With States in $110 Billion Warner Bros. Discovery Fight

Paramount Skydance Corp. settled with states suing to block its $111B takeover of Warner Bros. Discovery Inc. The deal includes commitments for 30+ films annually and expanded U.S. production. California AG Rob Bonta confirmed the settlement, emphasizing it's not an endorsement. The DOJ closed its antitrust investigation, finding the deal pro-competitive. PSKY shares fell 1.32%, WBD rose 10.77%.

Paramount Skydance settled with California and 11 states over its $110B acquisition of Warner Bros Discovery. The deal requires Paramount to increase film production spending by $300M annually and meet specific output targets. Paramount's stock rose 1.5%, while Warner Bros Discovery's stock increased over 11%. The settlement resolves legal challenges and avoids a $7M daily fee. The Writers Guild of America also settled with Paramount, securing a $17.5M healthcare fund and worker protections.

Paramount Skydance plans to settle a lawsuit led by California AG Rob Bonta that sought to block its $110B merger with Warner Bros. Discovery. The deal, approved by regulators, was delayed until 2027 due to the lawsuit. Settlement terms include independent editorial boards for CNN and CBS, and a $30M penalty per film if Paramount fails to release 30 films annually, according to Reuters. A delay could have cost Paramount $650M per quarter.

Paramount settled a lawsuit with California and 11 other states, clearing the way for its $110 billion merger with Warner Bros. Discovery. California's attorney general still opposes the merger.

Paramount and Warner Bros. Discovery reached a settlement with 12 states, including New York and California, resolving legal challenges to their $110 billion merger. The deal requires Paramount to release 30-32 films annually or pay fees, and establish independent editorial boards for CNN and CBS News. Protesters, led by Jane Fonda's group, opposed the merger, citing concerns about competition and worker impacts. Paramount faces a $600 million quarterly penalty if the deal isn't closed by Sept.

California AG Rob Bonta outlined a settlement with Paramount, allowing its acquisition by Warner Bros. Discovery. The deal includes commitments to U.S. film production, theatrical releases, and a news oversight board, but no structural changes. Bonta emphasized this is not an endorsement of the merger, which aims to close by October 1. The combined company will invest $1.5B in U.S. film production and establish an indie film fund, with annual workforce training costs of $9.5M.