Paramount has reached settlements with various state attorneys general, clearing the way for their acquisition of Warner Bros amid concerns about monopolies and employment.
Foreign news agencies reported on 21 Sep 2026 that Paramount Skydance has settled lawsuits with multiple U.S. states, removing a major hurdle to its $110 billion acquisition of Warner Bros Discovery.
Rob Bonta, California's attorney general and leader of the group of state prosecutors who filed the lawsuit, said they accepted the agreement to protect competition in the film and television industry, although he still disagrees with the merger of these two media giants.
Meanwhile, Paramount CEO David Ellison confirmed that once the concerns of the state attorneys general and the Writers Guild of America (WGA) were addressed, the company received full approval to proceed with the merger.
The lawsuits were filed by attorneys general from California, Colorado, Arizona, and New Jersey to block the merger, citing concerns over monopolies and unfair competition, protection of employment and labor in the media industry, and worries about relocation of production and company headquarters.
Paramount agreed to pay $17.5 million into the WGA health fund to cover legal fees and committed to a five-year ban on layoffs of writers at CBS News Broadcast. However, the WGA stated they reluctantly accepted the settlement due to lack of funds to continue litigation alone.
The agreement also requires Paramount to release at least 30 films annually, with strict measures banning AI-generated content from counting toward this quota to ensure that quality films created by human labor are produced.
Additionally, in the first two years after the merger, the company must allocate at least 20% of film production to take place in the U.S., increasing to over 30% in the following three years, with an independent monitor appointed to strictly oversee Paramount's compliance with the agreement.
Bonta affirmed that this agreement will help stimulate the national economy and employment, expecting to generate an economic impact between $300 million and $1.5 billion for film and TV production jobs in the U.S.
Although Ellison had indicated that the new company would keep its headquarters in California, Bonta clarified that the commitment regarding office location was not included as a condition in the legal contract.
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Source:bbc