Paramount agrees invest $1.5 billion in domestic movies and create a board for editorial independence at CNN, CBS as part of deal for Warner Bros.

Paramount has reached a settlement in an antitrust lawsuit with 12 states, clearing the final hurdle before the $81 billion merger between Paramount and Warner Bros. Discovery. As part of the settlement, Paramount has committed to several terms, including a five-year movie production plan, a $1.5 billion investment in domestic films, and the creation of a $25 million fund for buying independent films.

The settlement also includes penalties for not meeting production targets, such as the mandatory sale of Miramax Studios and a $30 million contribution to worker health care and retirement funds. Paramount will also set aside $47.5 million to help laid-off workers through job training and career development programs, and will ensure the editorial independence of Warner-owned CNN and CBS.

While the settlement protects workers and promotes domestic film production, analysts caution that the deal could still lead to less competition in the industry and higher prices for consumers.