Paramount Weighs $1.5B California Investment to Settle Antitrust Suit Blocking $81B Warner Bros. Discovery Deal

Paramount has discussed a $1.5 billion investment in California film and TV production as part of settlement talks with state attorneys general seeking to block its $81 billion acquisition of Warner Bros. Discovery, the Wall Street Journal reported. Other concessions under discussion include retaining both studio lots, selling some cable channels, and creating an editorial independence board for CNN. Divestiture of Paramount's Miramax stake was floated as a penalty if the company misses its 30-film annual release target post-merger. No agreement has been reached. The 12-state coalition is fractured: New York Attorney General Letitia James demands stronger worker protections, while Connecticut's William Tong and at least two other states have reservations. Absent a settlement, trial is set for March 2, 2027, in California. Paramount faces a ticking fee of roughly $7 million per day owed to Warner Bros. Discovery shareholders beginning October 1, plus a pending motion for a $1.88 billion bond from plaintiff states.