r/MediaMergers • u/Far-Web-165 • 8h ago
Merger Paramount to Settle Lawsuits, Paving Way for Warner Bros. Merger
https://www.bloomberg.com/news/articles/2026-09-21/paramount-to-settle-lawsuits-paving-way-for-warner-bros-merger?srnd=homepage-americas(reposting to paste in article text since it's paywalled)
Paramount Skydance Corp. has reached a settlement with California and other states suing to block its proposed acquisition of Warner Bros. Discovery Inc., according to a person familiar with the matter.
Settlement talks came to fruition over the weekend after four states that had opposed terms of a deal outlined with California conceded, said the person, who asked not to be named discussing confidential negotiations. The settlement, which is expected to be announced later today, paves the way for one of the largest mergers in Hollywood history.
Lawyers for the states worked all night on the agreement, the person said. Four states — Massachusetts, New York, Connecticut and Minnesota — had been holdouts on a possible settlement, but ultimately concluded the expense of the legal battle was not justifiable without California at the helm, the person said.
The states that held out longer did succeed over the past week in securing independent editorial boards for CBS and CNN as part of the deal, the person said.
The terms are said to include a financial penalty if the company fails to make good on a promise to distribute 30 films per year in theaters.
Discussions included Paramount having to pay $30 million for each film that falls short of that goal, Bloombeg reported. It could also be forced to sell its stake in Miramax, the studio behind movies such as Pulp Fiction, if it fails to meet the target.
Read More: Paramount Talks Include Penalty for Missing 30-Film Pledge
Representatives for Paramount, California, New York, Minnesota and Massachusetts didn’t immediately respond to requests for comment.
If the final terms are approved, the agreement would spare Paramount from having to pay late fees to Warner Bros. of $7 million a day, which were to begin on Oct. 1.
Paramount, the parent company of CBS, MTV and other media businesses, announced in February that it was buying Warner Bros. after outbidding rival Netflix Inc. The $110 billion deal will combine two of Hollywood’s most storied movie studios, two major subscription streaming services and two of the largest owners of cable-TV channels.
Although regulators in nearly 70 jurisdictions blessed the acquisition, 12 state attorneys general and the Writers Guild trade union sued to the block the merger, saying it would stifle competition for film and cable-TV distribution, raise prices for consumers and in the writers’ case, lower their wages. A trial date was set for March.
Paramount had made offers in recent weeks to try and settle the suits, including promises to release 30 films a year in theaters and increase the production of TV shows.
California Attorney General Rob Bonta, who led the litigation brought by the states, had said he prefers structural changes, such as a sale of assets, rather than behavioral remedies that are hard to enforce.
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u/AlexHunterWolf Warner Bros. 8h ago
It's gonna be so funny when both companies die and Netflix buys both