Paramount sign in front of the office at 1515 Broadway, New York City, USA, February 17, 2026.
Adam Gray | Reuters
paramount And states are trying to block the $110 billion takeover. warner bros Sources familiar with the matter told Reuters on Friday that the deal could be concluded as early as this weekend, with independent content monitoring of CNN among the terms being discussed.
Officials said a promise to release more movies in theaters is also among the terms being discussed as part of the settlement.
Paramount stock rose nearly 7% after the market closed. Shares of Warner Bros. Discovery rose 8.4% in off-market trading.
The lawsuit, filed by California and 11 other states, is one of the final hurdles in Paramount’s bid to become Paramount’s main rival. Netflix and walt disney. A settlement reached this week could allow Paramount to avoid paying millions of dollars in fees to Warner Bros. shareholders.
A spokesperson for the California Department of Justice said potential settlement negotiations are confidential. “We cannot confirm or deny whether settlement negotiations are taking place or their content,” the spokesperson said.
Paramount declined to comment.
Paramount CEO David Ellison is betting his company’s future on what he sees as a necessary move to combine two of Hollywood’s biggest studios and consolidate a wide range of television assets as he and others in Hollywood grapple with decades of market erosion.
This combination will bring together a number of valuable media assets, including CNN, HBO, Harry Potter, The Daily Show and NFL football game rights.
Paramount is forcing Warner Bros. shareholders to pay a $7 million daily “ticking fee” starting Sept. 30 until the deal closes. This sweetener was intended to demonstrate confidence to Warner’s investors.
Trump administration regulators approved the deal, but states sued in July to block it, arguing that the combined company would create a media giant with the power to jack up prices for movies and television.
The Writers Guild of America also filed a lawsuit seeking to block the deal, saying it would reduce pay and worsen working conditions for film and television writers.
A WGA spokesperson did not respond to requests for comment on whether the union is participating in discussions with Paramount and the states.
Other potential settlement terms could not be immediately determined. California Attorney General Rob Bonta said structural remedies, including selling off parts of a business, are more effective at protecting competition than companies committing to take specific steps.
Mr. Ellison previously vowed that the combined film studio would release 30 films a year.
Lawmakers have accused Ellison of tailoring coverage at Paramount-owned CBS News to favor President Donald Trump. Critics are concerned about how Warner will run CNN once it is under his ownership.
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