Paramount Says Warner Bros. Discovery Deal Can Close in Two Weeks After Settlements

Paramount says it has cleared the final legal blocks to its $111 billion takeover of Warner Bros. Discovery and is tentatively planning to close in about two weeks.

Chief executive David Ellison told staff the settlement of two lawsuits blocking the deal was "an exciting moment for our company and our industry." He said Paramount now has complete clearance under its merger agreement and can move toward closing, according to Deadline.

The lawsuits came from twelve state attorneys general and the Writers Guild of America, the union that represents screenwriters, which both challenged the merger on antitrust grounds, meaning concerns about too little competition. California led a coalition of California and 11 other states that sued to block the deal, which was then valued at $110 billion, according to Reuters.

Paramount settled both cases on 21 September 2026. The deal with the states takes the form of a five-year consent decree, a court-enforced settlement. Its terms were largely matched in the talks with the WGA.

The settlement requires concessions but no structural remedies, meaning Paramount does not have to sell channels, services or other assets to get the deal through. As part of it, Paramount committed to producing more than 30 films a year and expanding film production in the United States.

California Attorney General Rob Bonta described the consent decree as "not a blessing" of the merger. The language matters. The states did not endorse the combination. They agreed to stop trying to block it under conditions.

What the combination would bring together is scale. On one side are CBS, Nickelodeon and the Paramount+ streaming service. On the other are HBO, CNN and HBO Max. All would sit under one company if the closing goes ahead.

The road here has been long. Paramount first proposed to acquire Warner Bros. Discovery for $30.00 per share under a merger agreement on 4 December 2025, and later advanced that as a $30 per share all-cash offer. Paramount Skydance has said it secured clearances in nearly 70 countries worldwide and satisfied all regulatory conditions required to close, according to company statements.

In the US, the Antitrust Division of the Department of Justice cleared the planned $110 billion acquisition in June, according to Reuters. Then on 15 September 2026, the Justice Department backed a bond demand in the continuing antitrust fight over the takeover, according to Reuters. Warner Bros. Discovery shareholders have also delivered the requisite consents in previously announced consent solicitations, a formal vote process to approve debt changes linked to the deal.

Ellison had told Paramount staff in May that he was confident in the path forward for the combination and excited about the opportunities it would create. In his latest memo, he struck a more careful note. There is still work ahead to get the deal across the finish line.

For viewers, this means a decision point is close. Two large programme libraries would share one owner. For crews and writers, it decides who commissions the next series and films. Close is planned, not yet done.