Paramount settles lawsuit with US states, helping clear way for $110bn merger with Warner Bros

Paramount Skydance has reached a settlement with multiple US states, paving the way for its planned $110bn merger with Warner Bros Discovery. California Attorney General Rob Bonta announced the terms of the agreement, which were agreed upon after securing commitments to preserve competition in the film and television industries.

However, Bonta clarified that the settlement does not endorse the merger itself. Paramount's CEO, David Ellison, had previously threatened to relocate the studio operations outside California. Under the terms of the settlement, Paramount is required to release a minimum of 30 films annually. Speaking about the settlement, Ellison expressed his satisfaction, stating that the aim was to serve consumers, workers, and the creative community, which is crucial to the film industry.

With the legal hurdles cleared, Ellison added, Paramount is now fully prepared to proceed with the merger and implement the agreed-upon commitments, referencing the Writers Guild of America.