Paramount and state AGs will settle lawsuit, allowing Warner Bros. merger to proceed, reports say
The antitrust lawsuit threatened to delay Paramount's acquisition until mid-2027 and to cost the company hundreds of millions of dollars in fees.
Paramount and 12 state attorneys general have reached a settlement in a $110 billion merger with Warner Bros. Discovery, clearing the final hurdle for the deal according to Bloomberg and The Wall Street Journal. The agreement aims to address concerns that the merger would negatively impact the local economy and the entertainment industry.
Paramount has pledged to release 30 films theatrically per year, but California Attorney General Rob Bonta demanded "structural" remedies such as divestments. Other terms under discussion included safeguards for CNN and CBS News’ editorial independence. The settlement terms remain undisclosed, and representatives for Paramount and Bonta did not respond to TheWrap's request for comment.
The deal comes as Paramount prepared for a March trial against state AGs and the Writers’ Guild of America, which was delayed until five days after the trial outcome or June 1, 2027, whichever came first. Starting October 1, Paramount faced a 25 cent per share ticking fee, translating to $650 million per quarter or $7 million per day until closing.
This incentive spurred the quick settlement. Both sides were open to an out-of-court settlement, but Ellison threatened to relocate Paramount's operations if a settlement wasn't reached by the October 1 deadline.
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