Paramount Nears California AG Deal to Clear WBD Merger Hurdle, Weighs $1.5 Billion Investment as NY, Conn

Paramount Skydance Corp. may face a $30M penalty per missed film under proposed settlement terms for its Warner Bros. Discovery Inc. acquisition. The company pledged to release 30 films annually. California officials have expressed concerns about enforceability. Other terms include potential Miramax sale and $1.5B US film production investment.

Warner Bros Discovery (WBD) and Paramount Skydance shares rose 7.9% and 6.8% premarket Monday. The Wall Street Journal reported advanced settlement talks between Paramount and California's attorney general. A settlement could clear a final hurdle for their $110 billion merger. The deal includes a $1.5 billion investment in California production and a commitment to produce 30 movies annually. A settlement would also help Paramount avoid a $7 million daily fee to Warner Bros shareholders.

Paramount Skydance (PSKY) shares rose 6% and Warner Bros. Discovery (WBD) gained 7% in premarket trading. The surge followed reports of progress in settlement talks for Paramount's $81 billion acquisition of Warner Bros. Discovery. Paramount proposed a $1.5 billion investment in California's film and TV production sector and other concessions to address antitrust concerns. A final settlement is not yet confirmed, with a court-mandated conference scheduled for October.

Paramount Global and 12 US states are nearing a settlement over the $110 billion Warner Bros. Discovery merger. Key terms include CNN content monitoring and Paramount's theatrical film releases. Shares rose in after-hours trading, with Paramount up 7% and Warner Bros. Discovery up 8.4%. The deal faces a $7 million daily penalty if not closed by October 1, and opposition from the Writers Guild of America.

Warner Bros Discovery (WBD) stock rose 7.2% in pre-market trading due to reports of advanced settlement talks between Paramount (PSKY) and state attorneys general over an antitrust lawsuit blocking Paramount's acquisition of WBD. California AG Rob Bonta is leading negotiations, with a $1.5 billion production investment in California under discussion. The deal includes a $31.00 per share cash offer for WBD, with a ticking fee starting in 2026.

Paramount Skydance Corp (PSKY) stock rose 6.7% in pre-market trading after proposing a $1.5 billion investment in California production facilities to address legal challenges to its Warner Bros. Discovery acquisition. The move is seen as a step toward resolving regulatory hurdles, with analysts and broader market gains supporting the rally.