Paramount Skydance settles states antitrust suit over Warner Bros. Discovery deal

Paramount Skydance has reached a settlement with 12 state attorneys general and the Writers Guild of America over its proposed $81 billion acquisition of Warner Bros. Discovery, removing a major obstacle while leaving final court approval pending. The agreement requires at least $1.5 billion in U.S. production over five years, 30 theatrical releases annually during the first two years and 32 annually thereafter, with $30 million payments for each missed release directed toward worker health and retirement funds and possible additional penalties. It also establishes independent editorial oversight for CNN and CBS News, creates a $47.5 million fund for displaced workers, requires separate negotiations for basic-cable channels, and imposes independent compliance monitoring. State officials said the settlement protects workers, consumers and journalistic independence while emphasizing that it does not constitute support for the merger. Paramount CEO David Ellison welcomed the agreement, while critics continued to warn that the transaction could reduce competition and consumer choice; the court must still determine whether the settlement addresses the antitrust concerns.