Topline
State attorneys general have reached a settlement with Paramount Skydance in their lawsuit over Paramount’s planned merger with Warner Bros., Bloomberg reports, likely paving the way for the deal to go through—even as critics have warned the reported settlement terms do not adequately address concerns about the Hollywood giants joining forces.
Paramount Studios in Los Angeles on Oct. 29, 2025.
Los Angeles Times via Getty Images
Key Facts
The 12 states suing Paramount over its planned $110 billion merger with Warner Bros. Discovery reached a deal with the media giant, Bloomberg reported citing an anonymous source, after reports over the weekend suggested the two sides were in “advanced” settlement discussions.
States sued Paramount for allegedly violating antitrust laws with the deal, arguing the merger of the two media companies would result in reduced competition, less content being produced and higher prices for consumers.
While the exact details of the settlement are still unclear, Bloomberg reports the deal includes Paramount having to pay a financial penalty if it does not meet a commitment to release at least 30 films per year, and the creation of “independent editorial boards” for CBS and CNN, which will now both be under the Paramount umbrella.
The news of a deal comes after reports suggested several state AGs bringing the lawsuit opposed the settlement talks for not going far enough, but Bloomberg reports the attorneys general ultimately acquiesced because they couldn’t justify the cost of continuing the lawsuit without California, which has been the lead plaintiff in the case.
The proposed settlement is likely to attract widespread opposition, as critics of the merger have decried the settlement talks and accused California Attorney General Rob Bonta of “caving” to the media companies.
What to Watch for
The reported settlement still has not yet been officially proposed in court, and will still have to be approved by a judge. Paramount is likely to try and force any approval through quickly, as the company will have to pay Warner Bros. shareholders a combined $7 million per day if the deal hasn’t gone through by Oct. 1.
This story is breaking and will be updated.
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