Paramount clears the last major hurdle to buying Warner Bros. Discovery by settling the lawsuit brought by 12 states

Paramount Skydance is set to acquire Warner Bros. Discovery, overcoming the final hurdle in their merger discussions. Twelve states had previously sued to prevent the deal, citing concerns over antitrust issues. California Attorney General Rob Bonta announced on Monday that Paramount had settled the lawsuit, agreeing to release 30 movies annually for the next two years, followed by 32 movies per year for the following three years.

The settlement also includes a pledge to increase domestic production in California and New York if state film tax incentives are passed. Bonta emphasized that the settlement does not endorse the merger but highlights Paramount's commitment to maintain editorial independence for CBS News and CNN. The $110 billion merger would make David Ellison's Paramount Skydance a dominant force in Hollywood, controlling Warner Bros.

Studio, HBO, HBO Max, and networks like CNN, TBS, and HGTV. The deal was set to close by the end of September to avoid paying a significant "ticking fee" to Warner Bros. Discovery shareholders.