Paramount Skydance has reached a settlement with a coalition of twelve US states led by California over the states’ antitrust lawsuit challenging its planned $110 billion merger with Warner Bros Discovery, according to a Bloomberg report citing a person familiar with the matter. The agreement was made over the weekend and was expected to be announced later the same day.
As part of the settlement, the states secured commitments to establish independent editorial committees for the CBS and CNN television networks, a $1.5 billion investment in film production in California, and a pledge to produce 30 films per year after the merger is completed.
Following the news, Warner Bros Discovery shares rose nearly 10 percent, while Paramount shares gained about 7 percent.
The coalition had filed the lawsuit in July, arguing that the merger would reduce competition in the film‑rental market and in the licensing of cable television channels. Regulatory clearance had already been granted by the European Union and the United Kingdom, leaving the US state opposition as the remaining obstacle.
