Paramount Skydance has settled with California and 11 other states that sued to block its $110 billion acquisition of Warner Bros Discovery, a source familiar with the matter said on Monday, clearing one of the last hurdles to a deal that would reshape Hollywood. The settlement includes the creation of independent editorial boards for CNN and CBS, a move aimed at safeguarding the independence of their news operations under the combined company. It also includes a $30 million penalty per film for any shortfall against Paramount's pledge to release 30 movies annually. The settlement would remove a major obstacle to closing one of the largest media mergers in history, uniting two of Hollywood's biggest film studios, two major streaming services and two of the largest cable-news operations under a single owner. A coalition of 12 state attorneys general, led by California's Rob Bonta, sued in July to block the merger, arguing it would reduce competition and create a media behemoth with the power to raise prices in movies and television, while antitrust regulators in other jurisdictions globally, including the European Union and Britain, have already cleared the acquisition.
Paramount Skydance CorporationSettlement with 12 states removes a major antitrust hurdle to closing its $110B Warner Bros Discovery acquisition.
Warner Bros Discovery IncThe settlement clears the last major obstacle to Warner Bros Discovery being acquired by Paramount Skydance in the $110B deal.
