California settles lawsuit against Paramount/Warner merger, angering advocates

California and Paramount Skydance reportedly reached a settlement enabling the completion of the $111 billion merger between the two companies. The agreement, set to be officially announced later today, has sparked criticism from Democrats and media advocates. Lina Khan, who led the Federal Trade Commission during the Biden administration, commented that the Paramount/Warner Bros. merger appears to be facially illegal and that the state Attorney General's lawsuit challenging it is very strong.

Khan expressed concern that the states might now settle for behavioral remedies, which tend to fail in the long run, especially considering the critical importance of open markets for journalism and creative expression in a healthy democracy. The news of settlement talks emerged over the weekend, with Bloomberg reporting that Paramount had agreed to a deal with California and other states challenging the merger.

Reports suggest that after four states opposing the initial terms of the California deal agreed, settlement discussions concluded successfully, according to a source familiar with the matter.