Paramount Skydance is a major step closer to taking over Warner Bros Discovery after reaching a settlement with 12 US states that had been trying to block the $110 billion deal.
But getting the states out of the way came with some unusual conditions.
The settlement will require independent editorial boards for CNN and CBS as the two rival news organisations prepare to come under the same corporate roof.
Paramount has also promised to release at least 30 movies in theaters every year. Miss that target and things could get expensive.
The company would have to pay $30 million for every film it falls short, meaning releasing 28 movies instead of 30 could cost it $60 million.
Paramount and Warner Bros are already expected to release 28 films between them this year.
In July, California and 11 other states sued the massive deal arguing that putting the two Hollywood giants together would reduce competition and could eventually mean fewer movies and higher prices for consumers.
The Trump administration’s Justice Department had already cleared the merger, while regulators in nearly 70 countries have also given it the green light.
The states’ settlement removes one of the biggest obstacles left. Not every legal problem has disappeared, though.
The Writers Guild of America is still trying to stop the merger, warning that the combined company could cut production and push down writers’ wages.
Paramount is also under pressure to get the deal done quickly.
If it fails to close by September 30, it must begin paying Warner Bros shareholders a $7 million fee for every additional day of delay.
2026-09-21 23:02:00
