RismadarVoice Reporters
September 22, 2026
Paramount Skydance has settled legal challenges to its proposed $110 billion acquisition of Warner Bros. Discovery, reaching agreements with a group of United States states and the Writers Guild of America.
The settlements address lawsuits over competition, jobs and the potential concentration of power across the film, television, streaming and news industries.
A coalition of 12 state attorneys general, led by California, had sued in July to block the transaction, arguing that the combination could reduce competition and give the merged company greater influence over prices in the film and television markets.
Under the settlement with the states, Paramount agreed to increase domestic film production spending by at least $300 million annually and meet theatrical release commitments for five years.
The company is expected to produce 30 films annually during the first two years covered by the agreement and 32 films a year during the following three years.
Paramount also agreed not to increase rates charged to cinema operators for three years and will establish an editorial independence board covering CBS and CNN.
California Attorney General Rob Bonta described the agreement as a strong antitrust outcome, although he maintained his opposition to the merger itself.
The Writers Guild of America separately settled its legal challenge against Paramount. The union had argued that the transaction could negatively affect writers’ pay, working conditions and employment opportunities, and said it continued to have concerns about the merger despite settling.
Paramount and Warner Bros. Discovery have previously said the combination could generate about $6 billion in savings, including through cost reductions.
The proposed transaction would bring major entertainment and news assets under the combined company, including Paramount Pictures, Warner Bros, CBS, CNN and their streaming businesses.
Regulators in other jurisdictions, including the European Union and Britain, have already cleared the transaction.
The settlements resolve the two legal challenges as Paramount moves towards completing its acquisition of Warner Bros. Discovery.
