Paramount has reached a settlement with 12 state attorneys general over their antitrust challenge to its proposed $111 billion acquisition of Warner Bros. Discovery, removing the main legal barrier to the transaction.
The merger, described as the largest in Hollywood history, had been on hold while the states’ lawsuit remained unresolved. A trial had been scheduled for March 2, 2027.
The agreement was reached after tense discussions over the weekend, shortly before Paramount was due to begin accruing a $7 million daily “ticking fee” on Oct. 1. The approaching charge added pressure for both sides to resolve the dispute.
Talks focused on commitments by Paramount concerning its continued operations in California, its production levels and editorial oversight at CBS News and CNN. The settlement does not require any major divestitures, leaving Paramount’s proposed combination with Warner Bros. Discovery intact.
The precise terms have yet to be published. It is unclear what commitments Paramount has made on its California operations or production, and the specific editorial oversight arrangements for CBS News and CNN have not been disclosed.
It is also unknown whether the agreement includes financial payments or other concessions. The states involved have not been identified, despite the deal covering 12 attorneys general.
The settlement removes the states’ lawsuit as an impediment to the merger. The prospects for approval from other jurisdictions remain unclear. An official announcement is expected later Monday.
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