Paramount Global has finalized a legal settlement with a coalition of US states, clearing a significant regulatory hurdle for its proposed $110bn (£82.8bn) merger with Warner Bros Discovery. The agreement resolves a lawsuit previously brought by a group of states led by California, which had raised antitrust concerns regarding competition in the film and television sectors.
California Attorney General Rob Bonta announced at a press conference that state officials agreed to the terms after securing specific commitments designed to protect competitive markets across film, television, and broadcasting. However, Bonta emphasized that the resolution does not constitute political approval of the deal itself. “The settlement is not a vote of support for this merger,” Bonta stated. “It is not a blessing of the broader merger.”
Under the terms of the agreement, Paramount is required to release a minimum of 30 films annually, a condition intended to bolster domestic movie production. Prior to the settlement, David Ellison, the chief executive of Paramount Skydance, had threatened to relocate studio operations out of California if the state continued to oppose the transaction.
In a statement following the announcement, Ellison expressed satisfaction with the outcome, noting that the company had successfully addressed the concerns of both state attorneys general and the Writers Guild of America (WGA). “Our shared aim was an outcome that best serves consumers, workers and – most importantly – the creative community so vital to the art of visual storytelling,” Ellison said. He added that the company now has “complete clearance for this merger” and is eager to implement the new commitments.
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