Paramount settles lawsuit blocking $110 billion Warner Bros. merger

Paramount has reached a settlement with California and the 11 other states that sued to block its planned $110 billion acquisition of Warner Bros. The settlement removes a major roadblock standing in the way of the massive media merger. According to the proposed consent decree filed with the court, it includes requirements like minimum […].

Entertainment Business News Paramount settles lawsuit blocking $110 billion Warner Bros. Merger This settlement will resolve the antitrust lawsuit filed by California, New York, Washington, and several other states to block Paramount’s big deal. According to the proposed consent decree filed with the court, it includes requirements like minimum numbers of theatrical film releases over the next five years, starting with 30 in year one and two, and 32 in the following years, and a commitment to spend at least $300 million more on production in the US compared to what the companies spent in 2025.

At least four of the films produced must be independent films, and at least 20 percent must be “tentpole” blockbuster movies with $50 million-plus budgets, and releases on a minimum of 3,000 US screens within the first month. If Paramount doesn’t meet these film release requirements, it must divest Miramax Studios and pay $30 million per missed film. It also requires the merged company to keep offering a free streaming service, like Pluto TV, and includes a commitment not to sell Paramount Studios or Warner Bros.

Lots in California for at least five years. The settlement has rules for the negotiations over cable channels owned by the combined company as well, in addition to requirements for a news editorial independence board “made up of five established journalists” with at least ten years of experience to ensure editorial independence at CBS and CNN. The Writers Guild of America also settled its antitrust lawsuit against Paramount.

The mega-merger of the year will apparently go forward. By Mariella Moon and Nathan Ingraham Updated: Sept.

The company has settled the antitrust lawsuit brought forth by 12 states, which was led by California Attorney General Rob Bonta, to stop the $11 billion merger. According to CNN, the announcement was made by Bonta at a press conference in Los Angeles today, and the deal is now expected to close in early October.

According to CNN, Paramount has agreed to an news editorial independence board that'll oversee CBS News and CNN itself and to commit to 30 theatrical movie releases a year. With the merger, Paramount chief David Ellison will be gaining control of the DC and the Harry Potter universes, among many other massive franchises.

The Writers Guild of America (WGA) also settled its lawsuit against the merger despite the fact that its objections remain. "Now that the Attorneys General have settled with Paramount, however, as a nonprofit, the WGA must contend with the reality of forging ahead alone, with no backing from government enforcers, with a complex antitrust lawsuit that would cost millions of dollars to pursue through trial," the WGA said in a statement.

It notes that Paramount has agreed to "prohibit writer layoffs at CBS News Broadcast for 5 years, and to pay $17.5 million to our health fund along with our attorneys' fees in the litigation" as part of the settlement. Despite the settlement, not all of the attorneys general are happy with this outcome.

CNN says that several wanted stronger concessions, including CT Attorney General William Tong. "Connecticut wanted and demanded full divestiture of CNN and CBS News," he said in a statement released by his office.

"We wanted to save ethical and independent journalism and news. We fought aggressively for that remedy.

I am deeply disappointed that we could not do more. The complete abdication of the federal government's enforcement role in this fight left states with one arm tied behind our backs." On Friday, the Wall Street Journal reported that Paramount was in advanced talks with Bonta to reach an agreement that would enable the purchase to push through.

According to Politico, Paramount considered moving out of California if it couldn't reach a deal, leading Gov. Gavin Newsom and Los Angeles Mayor Karen Bass to urge Bonta to settle the lawsuit.

To note, regulators in the US, the DOJ and the European Union have already approved the merger, and this agreement pretty much seals the deal.

At a press conference announcing the agreement, California AG Rob Bonta called the arrangement “the opposite” of the 2018 Disney-Fox deal, where Fox’s film output dropped afterward. “Let me be clear: This settlement is not a vote of support for this merger,” Bonta adds in a press release.

“But we believe this settlement, which resolves our antitrust concerns in every market alleged in our case, protects competition and consumer choice, and puts workers’ needs, concerns, and futures first, is the best course of action.” Paramount Chairman & CEO David Ellison: We are grateful to Attorney General Bonta and his fellow AGs, as well as the WGA, for engaging in good faith to find a path forward to a resolution that serves all parties, and to Governor Newsom for his support throughout this process. Our shared aim was an outcome that best serves consumers, workers and — most importantly — the creative community so vital to the art of visual storytelling.

We’re confident this agreement does exactly that, memorializing a series of commitments that include 30+ films annually and expanded U.S. Film production to help revitalize our industry here at home.

Our goal has always been to build a stronger Hollywood — one with more stories told, greater choice for consumers and stronger competition. That vision was validated by unanimous approval from competition authorities in nearly 70 jurisdictions worldwide, who agreed this deal is pro-competitive, pro-consumer and pro-worker.