Paramount Settles Antitrust Lawsuits to Finalize Warner Bros. Discovery Merger

Paramount reached a settlement on Monday with a coalition of 12 Democratic-led states and the Writers Guild of America, removing the final major regulatory hurdles for its acquisition of Warner Bros. Discovery. The deal, valued between $81 billion and $111 billion, consolidates HBO, CNN, CBS, and major movie studios into a single entity. The settlement avoids a March 2027 trial in California and prevents Paramount from paying a $7 million daily ticking fee to shareholders starting October 1.

To resolve antitrust concerns regarding industry concentration, Paramount agreed to several concessions. The company will invest $1.5 billion in California film production over five years, maintain its existing studio lots in the state, and commit to releasing at least 30 films theatrically per year. Failure to meet these production targets could result in $30 million penalties per film or the forced divestiture of Miramax Studios. Additionally, Paramount will establish a $47.5 million workforce fund for laid-off employees.

To safeguard media independence, the agreement requires the creation of an independent editorial board for CNN and CBS News within 180 days. This board will consist of five experienced journalists serving three-year terms, with a limit of two members from any single political party. While California Attorney General Rob Bonta led the push for the deal, Connecticut Attorney General William Tong expressed disappointment that the settlement did not require the full divestiture of the news networks. CEO David Ellison has denied concerns that his political ties would influence reporting, asserting that journalists will answer only to the facts.