Paramount Skydance Corp. has reached a settlement with a coalition of 12 state attorneys general, led by California, and the Writers Guild trade union. This agreement resolves an antitrust lawsuit that challenged the company's acquisition of Warner Bros. Discovery, clearing the path for the merger to proceed.
The blockbuster deal, with valuations cited between $81 billion and $111 billion, will combine two of Hollywood's oldest studios. The resulting entertainment empire, led by David Ellison, will house key TV networks such as CBS and CNN, as well as streaming platforms HBO Max and Paramount+. The merger brings together extensive libraries including titles such as Harry Potter and Top Gun.
The lawsuit, which followed the Justice Department's June approval, was driven by concerns that merging two of the five remaining legacy studios would extinguish competition and reduce the number of films in theaters and on streaming platforms. To settle the matter, Paramount made concessions to bring more film production to the United States and progressively increase annual film releases. Under the agreement, the company will not be required to sell its cable channels.
The settlement removes a significant hurdle that threatened to delay the acquisition until mid-2027 and incur hundreds of millions of dollars in fees. Specifically, the company avoids a daily $7 million fee if the merger closes by September 30. Despite the resolution, approximately 20 opponents of the merger took their fight to the New York Attorney General’s office on Monday.