Paramount Settles State Antitrust Suit, Clearing Path for $81 Billion Warner Bros. Discovery Buyout

Skydance-owned Paramount reached a settlement on Monday, September 21, 2026, with a coalition of state attorneys general that had sued to block its $81 billion acquisition of Warner Bros. Discovery, removing the deal's final regulatory hurdle. Details of the settlement were not immediately disclosed but were expected later in the day. The states, including California and New York, filed suit in July alleging the combination would "extinguish competition" and reduce consumer choice for moviegoers and cable subscribers. The Writers Guild of America filed a companion complaint, and a full antitrust trial had been set for March. Paramount had delayed the transaction into next year pending the case, while stating it had secured all worldwide regulatory clearances, including from the Justice Department. Critics warned of further consolidation. Alvaro Bedoya of the American Economic Liberties Project cited expected layoffs and higher cable and ticket prices.