Paramount reaches settlement, clearing way for Warner Bros. merger [Updated]

California Attorney General Rob Bonta announced a settlement with Paramount in a press conference this afternoon. Under the terms of the settlement, Paramount is committed to producing 30 films annually, increasing to 32 films in the future. They must spend an additional $300 million each year on domestic film production compared to 2025.

At least 20 of these films will be wide releases, and four must be independent productions. Additionally, at least 20% of the films must have budgets exceeding $50 million. Both Paramount and Warner Bros. cable channels will negotiate TV carriage deals separately for five years. A News Editorial Independence Board will oversee the editorial and journalistic principles of the combined entity's news channels.

While some involved in the case, such as Connecticut's William Tong, feel the settlement falls short, the WGA also announced its own terms with Paramount. The guild secured $17.5 million for the writers' health fund and an agreement to avoid writer layoffs at CBS News for five years. However, WGA representatives acknowledge that the merger still poses risks to writers and the industry, and without government enforcement, they must move forward with an ongoing antitrust lawsuit.