Paramount Settles State Lawsuits, Clearing Path for $110 Billion Warner Bros. Discovery Merger

Paramount Skydance Corp. has reached a settlement with California and other states seeking to block its $110 billion acquisition of Warner Bros. Discovery Inc., according to a person familiar with the matter. An announcement is expected September 21, 2026. The agreement resolves litigation brought by 12 state attorneys general and the Writers Guild. Holdout states Massachusetts, New York, Connecticut and Minnesota conceded after securing independent editorial boards for CBS and CNN. Terms require Paramount to release 30 films annually in theaters or pay $30 million per missed film and potentially divest its Miramax stake. The deal spares Paramount late fees of $7 million per day owed to Warner Bros., set to begin October 1. Paramount, parent of CBS and MTV, outbid Netflix Inc. in February to acquire Warner Bros. State representatives did not immediately comment.