US states settle suit with Paramount, opening way to Warner Bros mega merger
The $81 billion deal will still bring together two of Hollywood's oldest studios, key TV networks and streaming platforms.
Paramount has agreed to a legal settlement with a group of US states opposed to its $81 billion merger with Warner Bros Discovery. The states argued that the combined company would cut jobs in Hollywood and reduce the number of films produced annually. In exchange, Paramount pledged to boost film production and fund worker support, clearing the path for the merger, which creates a powerful Hollywood entity encompassing television, news, and cinema.
The deal, secured in February through a bidding war against Netflix, includes assets like Warner Bros Pictures, CNN, and HBO Max. Despite Trump's approval, 12 Democratic-led states sued to halt the transaction. Paramount's parent, Oracle founder Larry Ellison, and David Ellison contributed funding and guarantees. The settlement ensures CNN's editorial independence, with a News Editorial Independence Board overseeing principles.
The merged studio must produce 30 films each year for the first two years and 32 following years, with at least four independent and 20% blockbusters. Paramount must also increase US film production by $300 million annually beyond 2025 and maintain production lots and labor agreements. The Writers Guild of America also settled, agreeing to halt writer layoffs at CBS News for five years and pay $17.5 million to its health fund.
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