Paramount Settles State Antitrust Suit, Clearing Path for $111-Billion Warner Bros. Discovery Takeover

Paramount Skydance and California Attorney General Rob Bonta reached a settlement ending a 12-state antitrust challenge to Paramount's $111-billion acquisition of Warner Bros. Discovery, a person familiar with the matter said. A federal judge must still approve the agreement. Under the terms, Paramount would pay a penalty if it fails to release 30 films annually in theaters and spend $1.5 billion on Hollywood film production over five years. The states, including New York and Connecticut, had argued the merger would concentrate wide-release films and cable networks—more than 50 channels, nearly 30% of the cable space. The deal combines HBO Max and Paramount+, and adds CNN, TBS and HGTV to Paramount's CBS portfolio. Paramount has pledged over $6 billion in cost cuts; a Los Angeles County report estimated 4,500 regional job losses. Beginning October 1, Paramount owes Warner shareholders a ticking fee of 25 cents per quarter, per share, adding roughly $7 million daily to the $31-per-share price.