Paramount Skydance has reached a settlement with California and 11 other U.S. states that had filed a lawsuit to block its $110 billion acquisition of Warner Bros. Discovery, a person familiar with the matter said on Monday, removing one of the final major obstacles to completing the deal.
Editorial Safeguards and Film Production Commitment
The settlement includes the creation of independent editorial boards for CNN and CBS, the source said, as well as a $30 million penalty for each film if Paramount fails to meet its commitment to release 30 films annually.
The concessions are aimed at preserving newsroom independence and ensuring continued film production, following months of regulatory and legal controversy over the concentration of power across Hollywood’s film, television, streaming and news sectors.
Shares Surge More Than 5% and 10%
Paramount shares surged more than 5% during Monday trading, while Warner Bros. Discovery shares rose more than 10%, as the companies moved closer to completing a merger that would create one of the world’s largest media and entertainment groups.
Settlement Follows Lawsuit to Block Acquisition
Reports on Friday said Paramount and the U.S. states could reach a settlement as early as the start of the week. Paramount, Warner Bros. Discovery and the office of California Attorney General Rob Bonta had not responded to requests for comment on the settlement as of yet.
