Paramount Settles States’ Lawsuit Over Warner Deal

Paramount Skydance has settled an antitrust lawsuit brought by California and 11 other states, removing a major obstacle to its proposed acquisition of Warner Bros. Discovery and potentially creating an $110 billion entertainment company spanning film, television, streaming and news. The five-year agreement would require Paramount to release at least 30 films annually, rising to 32 in later years, including wide releases, tentpoles and independent films, while investing at least $300 million more each year in U.S. production and maintaining operations in California. It also calls for separate negotiations over the companies’ basic-cable networks, limits certain pricing and affiliate-fee practices, and provides penalties or other remedies for violations. Independent editorial boards for CNN and CBS News are intended to protect newsroom independence. The settlement still requires court approval, and California’s attorney general said it does not endorse the merger; Paramount expects to close the deal soon, while the Writers Guild of America continues a separate legal challenge.