Paramount settles with U.S. states over Warner Bros. merger

The US states of California, Arizona, Colorado, Connecticut, Massachusetts, Minnesota, Nevada, New Jersey, New Mexico, New York, Oregon, and Washington have reached a settlement with Paramount that allows the company to acquire Warner Bros. Discovery. This merger, one of the largest in recent years, consolidates the two media giants into a powerful Hollywood empire encompassing television, news, and cinema.

Paramount, led by David Ellison, secured the deal in a bidding war against Netflix, which had previously declined to purchase the assets.

The settlement, approved by the Trump administration in June, will keep CNN's editorial independence intact, as established by a newly formed News Editorial Independence Board. This board, overseen by an internal monitor, an independent trustee, and a committee of five states, will ensure the news channels adhere to set editorial principles. The states' concerns over job losses and potential compromises to CNN's independence were addressed through several safeguards included in the agreement.

As part of the deal, the merged studio must produce 30 films each of the first two years and 32 films in each of the subsequent three years, including a minimum of four independent productions and 20% blockbusters. Paramount will also spend an additional $300 million annually on US film production compared to 2025 figures. The terms of the settlement also require both companies to maintain their production facilities, honor labor agreements, and invest in workforce training.