Paramount reaches settlement with 12 state attorneys general, clearing path for Warner Bros merger

Paramount Skydance has cleared the final major hurdle to its $110 billion acquisition of Warner Bros. Discovery by reaching a court-enforceable, five-year settlement with 12 state attorneys general led by California's Rob Bonta. The agreement requires Paramount to make significant behavioral concessions, including committing to release at least 30 theatrical films annually, spending an additional $1.5 billion on domestic production, establishing an independent editorial board for CBS News and CNN, and negotiating cable packages separately. The settlement allows Paramount to avoid a costly $7 million daily ticking fee starting October 1, 2026, paving the way to close the historic media merger within weeks.

Paramount–Warner Bros merger settlement

• ▪By settling its antitrust lawsuit with the 12 state attorneys general before October 1, 2026, Paramount Skydance avoids paying Warner Bros. Discovery shareholders a ticking fee of 25 cents per share per quarter, which equates to approximately $7 million per day
• ▪Paramount Skydance CEO David Ellison stated that the company is tentatively planning to complete the $110 billion acquisition of Warner Bros. Discovery in approximately two weeks
• ▪Paramount Skydance and a coalition of 12 state attorneys general reached a court-enforceable, five-year settlement to resolve the antitrust lawsuit blocking Paramount's $110 billion acquisition of Warner Bros. Discovery
• ▪The Writers Guild of America settled its separate antitrust lawsuit, filed in July 2026, against Paramount Skydance over the Warner Bros. Discovery merger

Theatrical film release commitments

• ▪Paramount Skydance agreed to distribute at least 30 films theatrically per year for the first two years post-merger, and 32 films per year for the subsequent three years
• ▪Under Paramount Skydance's settlement with 12 state attorneys general, at least 20 of its annual theatrical films in the first two years, and 21 in the following three years, must be wide-release movies distributed to at least 2,000 screens
• ▪If Paramount Skydance fails to meet its annual theatrical film release commitments under its settlement with 12 state attorneys general over the Warner Bros. Discovery merger, it must pay a $30 million penalty per missing film and divest the Miramax film studio

Domestic production spending requirements

• ▪As part of its settlement with 12 state attorneys general over the Warner Bros. Discovery merger, Paramount Skydance committed to spending an additional $300 million annually on domestic film and television production in the United States over the next five years, totaling $1.5 billion
• ▪As part of Paramount Skydance's settlement with 12 state attorneys general over the Warner Bros. Discovery merger, Paramount Skydance pledged not to sell or close either the Paramount studio lot or the Warner Bros. studio lot in the Los Angeles metropolitan area for at least five years

News network editorial independence

• ▪Seth Stern, director of advocacy at the Freedom of the Press Foundation, criticized the independent editorial board that Paramount Skydance agreed to establish for CNN and CBS News as part of its settlement with state attorneys general as a weak half-measure that poses First Amendment concerns regarding government-enforced accountability
• ▪Paramount Skydance agreed to establish an independent editorial board to support and ensure the continued editorial independence of CBS News and CNN

Media consolidation concerns

• ▪California Attorney General Rob Bonta stated that Paramount Skydance's settlement with 12 state attorneys general over its acquisition of Warner Bros. Discovery is not a vote of support for the merger, expressing concern that further consolidation in central markets does not serve consumers or competition well
• ▪A Los Angeles County economic report predicted that the merger of Paramount Skydance and Warner Bros. Discovery could result in approximately 4,500 job losses in the Los Angeles region

Debatable claims

• ▪The Paramount-Warner Bros. Discovery merger will harm consumers and creators
• ▪State attorneys general should have rejected the Paramount antitrust settlement
• ▪The government-mandated editorial board for CBS News and CNN threatens press freedom