LOS ANGELES – Paramount Skydance and a coalition of state attorneys general on Monday settled the antitrust lawsuit blocking the company’s $111 billion acquisition of Warner Bros. Discovery, clearing CEO David Ellison to close the largest merger in Hollywood history before a costly Oct. 1 deadline.
California Attorney General Rob Bonta, who led the coalition, announced the agreement at a Los Angeles press conference, saying the settlement was not an endorsement of the merger, according to The Hollywood Reporter. The settlement resolves the suit brought by the 12-state coalition and removes the last remaining hurdle to the merger, IndieWire reported. The Los Angeles Times also reported the settlement Monday.
Ellison struck a conciliatory tone. In a statement reported by Deadline and other outlets, the Paramount chief said he was “grateful to Attorney General Bonta and his fellow AGs, as well as the WGA” for negotiating in good faith, and credited Gov. Gavin Newsom for his support. He said the shared goal was an outcome that serves consumers, workers and the creative community.
The terms read like a growth plan. According to Reuters, Paramount will spend at least $300 million more each year on domestic production and release 30 films in each of the first two years after closing, rising to 32 in each of the following three years. At least four films a year must be independent productions, and at least 20% must be blockbusters. The company will also create an editorial independence board covering CBS and CNN.
Much of that tracks what Ellison had already offered. He has repeatedly pledged that the combined company would put more than 30 films in theaters annually, Variety reported. Bonta, by contrast, had publicly insisted on structural remedies such as asset sales, per Deadline. Full settlement terms had not been released as of publication.
The timing matters. A $7 million-per-day ticking fee was set to begin Oct. 1, and the settlement lets Paramount avoid it if the deal closes in roughly the next 10 days. It also heads off a trial scheduled for March 2, 2027.
Trump administration regulators had already cleared the merger when the 12 states sued in July. In announcing the suit, Bonta’s office argued the combined company would control nearly one-third of theatrical films and nearly one-third of basic cable programming.
The fight turned bitter. Paramount threatened to leave California, with Texas and Tennessee courting the company. Newsom, Los Angeles Mayor Karen Bass and IATSE were among those urging both sides to settle rather than go to court, Deadline reported.
