Paramount settles lawsuits with 12 US states, clearing way for Warner merger
News Source
β’Mon, 21 Sep 2026 16:52:49 GMT
π° What Happened
Paramount has settled with 12 US states that sued to block its $81bn merger with Warner Bros Discovery. California's attorney general announced the deal on Monday.
The states, led by California, feared the merger would wipe out competition. Paramount agreed to keep independent editorial boards at CBS and CNN.
It also promised to spend at least $300m on US production and release at least 30 films in each of the first two years. If it fails, it must pay a penalty.
π The Backstory
The Justice Department approved the merger in June, but the states sued in July. Four states held out until this weekend before agreeing.
Paramount is run by David Ellison, son of tech billionaire Larry Ellison, who took over the studio in 2024. Under the deal, Paramount keeps its cable channels, including CBS, MTV, Nickelodeon and Showtime.
A trustee will watch over how well the company follows the settlement. The agreement also covers how CNN's journalism is protected.
π― Why It Matters
The deal would put more of Hollywood's biggest studios under one owner. The terms will decide how much choice viewers and workers really have.
Paramount has settled with 12 US states that sued to block its $81bn merger with Warner Bros Discovery. California's attorney general announced the deal on Monday.
The states, led by California, feared the merger would wipe out competition. Paramount agreed to keep independent editorial boards at CBS and CNN.
It also promised to spend at least $300m on US production and release at least 30 films in each of the first two years. If it fails, it must pay a penalty.
The Justice Department approved the merger in June, but the states sued in July. Four states held out until this weekend before agreeing.
Paramount is run by David Ellison, son of tech billionaire Larry Ellison, who took over the studio in 2024. Under the deal, Paramount keeps its cable channels, including CBS, MTV, Nickelodeon and Showtime.
A trustee will watch over how well the company follows the settlement. The agreement also covers how CNN's journalism is protected.
The deal would put more of Hollywood's biggest studios under one owner. The terms will decide how much choice viewers and workers really have.