California AG Settles Paramount-Warner Bros. Discovery Merger Lawsuit
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California AG Settles Paramount-Warner Bros. Discovery Merger Lawsuit
- California Attorney General Rob Bonta, leading a coalition of 12 states, recently settled an antitrust lawsuit against Paramount Skydance's $111 billion acquisition of Warner Bros. Discovery.
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The settlement, announced on September 21, 2026, includes commitments for increased film output, substantial domestic production investment, and a fund for impacted workers.
California Attorney General Rob Bonta and a coalition of 11 other state attorneys general have reached a settlement with Paramount Skydance Corporation, resolving an antitrust lawsuit that challenged the company’s $111 billion acquisition of Warner Bros. Discovery. The lawsuit, initially filed in July 2026, aimed to block the merger, arguing it would lessen competition, potentially leading to higher prices for consumers, a decline in theatrical film releases, and a reduction in content variety and quality.
The settlement, announced on September 21, 2026, includes a five-year, court-enforceable agreement with several key provisions. Paramount Skydance has committed to an annual film release schedule of 30 films for the first two years, increasing to 32 films for the subsequent three years, with penalties, including a potential divestiture of Miramax, if these quotas are not met. Additionally, the agreement mandates an extra $1.5 billion investment in domestic film production over five years and a $47.5 million fund to support workers affected by the merger. The settlement also includes restrictions on cable negotiation practices to maintain competitive pricing and requires Paramount to establish an independent board to oversee the news operations of CBS and CNN.
While Bonta stated that the settlement resolves the antitrust concerns, he also clarified that it does not signify an endorsement of the merger itself. The agreement avoids a trial that was scheduled for March 2027. The Writers Guild of America also settled its separate lawsuit, securing a $17.5 million payment for its health fund and an agreement not to lay off writers at CBS News Broadcast for five years.