Paramount and State Attorneys General Near Final Settlement in Antitrust Case
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Paramount and State Attorneys General Near Final Settlement in Antitrust Case
- Paramount has reached a settlement with 12 state attorneys general, including California Attorney General Rob Bonta, resolving an antitrust lawsuit over its $110 billion acquisition of Warner Bros. Discovery.
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The agreement, announced on Monday, September 21, 2026, aims to address concerns about reduced competition and protect Hollywood jobs, with a federal judge setting a hearing for Thursday, September 23, 2026, to finalize details.
A significant antitrust lawsuit challenging Paramount’s $110 billion acquisition of Warner Bros. Discovery is nearing its conclusion, with a settlement reached between Paramount and a coalition of 12 state attorneys general, led by California Attorney General Rob Bonta. This agreement, announced on Monday, September 21, 2026, aims to resolve concerns that the merger would harm competition, potentially leading to less content and higher prices for consumers. A federal judge has scheduled a hearing for Thursday, September 23, 2026, to address outstanding questions and finalize the consent decree.
Key terms of the five-year, court-enforceable settlement include a commitment from Paramount to invest at least an additional $1.5 billion in domestic film production over five years. The company has also agreed to produce a minimum of 30 films per year for the first two years, increasing to 32 films annually for the subsequent three years. Should Paramount fail to meet these theatrical output commitments, it could face penalties, including a $30 million fine per missed film, with a portion going to Hollywood labor unions, and a requirement to divest the Miramax film studio.
Additionally, the settlement mandates that Paramount maintain its studio lots in Los Angeles and prohibits their sale or closure. To safeguard journalistic integrity, an independent board will be established to oversee the news operations of CBS and CNN. The agreement also addresses concerns about cable negotiations, requiring Paramount and Warner Bros. to negotiate packages for their cable channels separately to help maintain competitive prices. If these guardrails are not met, Paramount could be required to divest channels such as BET, VH1, and Comedy Central.
The Writers Guild of America, which had filed a separate antitrust lawsuit, also reached a settlement with Paramount, which includes a prohibition on writer layoffs at CBS News for five years and a $17.5 million payment to the WGA’s health fund. While Attorney General Bonta stated that the settlement is not an endorsement of the merger, he emphasized its importance in protecting jobs and ensuring future film production in the U.S.