Paramount settles states' case to seal $111bn Warner Bros deal
Paramount has settled an antitrust lawsuit brought by a dozen state attorneys general, removing the last legal block to its $111 billion acquisition of Warner Bros. Discovery.
The states' case was led by California Attorney General Rob Bonta. The settlement was reported on 21 September 2026 and also resolves a related lawsuit brought by the Writers Guild of America, according to that reporting Deadline.
Under the terms reported, Paramount agreed to guardrails around CNN, financial penalties linked to chief executive David Ellison's commitment to produce 30 films a year, and a period in which the two studios will operate separately. Paramount will not have to sell cable networks under the deal. Shares jumped. Paramount shares rose 9% on news of the settlement.
The clock was ticking. Paramount faced a $7 million-per-day payment to Warner Bros. Discovery from 1 October if the acquisition had not closed. That payment, called a ticking fee, meaning a daily penalty for delay written into the deal terms, equals 25 cents per share per quarter and could have cost Paramount close to $2 billion.
The fight moved fast. The U.S. Department of Justice's Antitrust Division cleared the planned acquisition on 12 June 2026, Reuters reported at the time Reuters. The states sued in July. Bonta's office then said it had secured an emergency order blocking the merger while the case continued.
A judge set a March trial date. Paramount and the attorneys general had been ordered to appear at a court-ordered settlement conference in mid-October. That conference is no longer needed to keep the deal alive.
The talks were tense. Paramount had asked the court for a $1.88 billion bond from the plaintiffs to cover what it called "extraordinary losses", with a hearing scheduled in Oakland Deadline. The Justice Department backed Paramount's demand that the challenging states post bond. Four state attorneys general were not on board with a quick deal, and Iowa's filing had pushed the dispute toward U.S. Supreme Court review. Ellison threatened during the fight to exit Hollywood and relocate Paramount to another state.
Each side stated its case in plain terms. Bonta said proposed Warner Bros. mergers raised concerns about increased market concentration, reduced competition and harm to workers in the media. Paramount said the states' lawsuit distorts settled antitrust law and is based on a misrepresentation of competition in entertainment, Reuters reported Reuters.
The underlying agreement dates to 27 February 2026, when Paramount Skydance Corp. and Warner Bros. Discovery entered into a deal first put at $110 billion. The value is now put at $111 billion in the most recent reporting. Paramount has enhanced its $30-per-share all-cash offer for Warner Bros. Discovery and said it has satisfied all regulatory clearances required under the merger agreement, with clearances in nearly 70 countries worldwide, according to a Paramount press statement.
For viewers, this means one owner can now finalise control of two large studio and television libraries. That includes cinemas, cable networks and streaming services that commission scripted, unscripted and non-English-language shows for the same global market.
