Paramount Skydance Settles State Suit, Clearing Path for $110B Warner Bros Discovery Merger

Paramount Skydance has reached a settlement with California and other states that sued to block its $110 billion merger with Warner Bros Discovery, Bloomberg News reported on September 21, 2026. An announcement is expected later today. Warner Bros Discovery shares rose nearly 10% on the report; Paramount gained about 7%. The deal would unite two major Hollywood studios, streaming services and cable-news operations under one owner. A 12-state coalition led by California Attorney General Rob Bonta sued in July, arguing the merger would reduce competition in theatrical film distribution and basic cable channel licensing. States secured independent editorial boards for CBS and CNN as part of the settlement. Talks reportedly included a $1.5 billion California production commitment and a pledge to produce 30 films annually. Settling avoids a $7 million daily fee owed to Warner Bros shareholders for each day past September 30 that the deal remains unclosed. EU and UK antitrust regulators already cleared the acquisition.