Mr. Ellison’s Paramount will waive its $7 million daily fee if its $110 billion merger with Warner Bros. is completed by Sept. 30.
Published September 21, 2026
Paramount Skydance has reached a settlement with California and 11 other states that sued to block its $110 billion merger with Warner Bros. Discovery, Reuters and Bloomberg News reported, citing sources.
The settlement announced Monday would include independent editorial boards to oversee CNN and CBS amid concerns that political pressure could influence reporting. The lawsuit was brought by a coalition of 12 state attorneys general.
Recommended stories
list of 4 itemsend of list
But free speech advocates aren’t convinced that will help.
“The independent editorial boards at CNN and CBS are half-baked weaklings. The fish rots from the head on. And this fish is led by a compromised oligarchy with a history of throwing journalists under the bus for business interests,” Seth Stern, advocacy director at the Freedom of the Press Foundation, told Al Jazeera.
“The Editorial Board, in fact, raises its own First Amendment problems when it is established under a settlement with the government. It is unclear how the Attorney General can constitutionally hold Paramount accountable if the Editorial Board fails to do its job without interfering with the content, which is exactly the problem the Editorial Board seeks to address.”
Paramount Skydance is owned by technology mogul Larry Ellison, a close ally of US President Donald Trump. The company is run by Ellison’s son David, raising concerns that the relationship could influence coverage of President Trump and his policies.
The settlement also includes a $30 million penalty if the media giant fails to produce 30 films a year as promised, according to Reuters.
The move ends months of regulatory and legal wrangling over the deal, which would have dramatically concentrated power across Hollywood’s film, TV, streaming and news businesses.
By securing concessions aimed at preserving newsroom independence and preserving film production, Paramount appears to have addressed some of the concerns, moving the companies closer to completing a merger that will create one of the world’s largest media and entertainment groups.
Paramount did not immediately respond to Al Jazeera’s request for comment.
The Wall Street Journal reported Sunday that there were other considerations, including a sale of CNN and the creation of an oversight board to ensure the cable news giant maintains editorial independence.
Separately from the July lawsuit by the United Attorneys General, the Writers Guild of America also filed suit seeking to block the contract. Bloomberg reported Monday that the guild reached a settlement over the weekend.
Bloomberg, citing unnamed sources, reported that the terms of the deal include concessions for workers. The company also agreed to protections for journalists at CBS and CNN, including staffing requirements for both stations, it said.
The lawsuit was a hurdle in bringing the two media giants together, which the Trump administration had already cleared.
Other measures being considered include selling some cable channels, according to the Wall Street Journal.
The settlement allows Paramount to avoid paying a $7 million daily fee to Warner Bros. shareholders for each day the transaction does not close after September 30.
On Wall Street, the stock prices of both companies soared on the news. Paramount Skydance rose 10% in midday trading, and Warner Bros. Discovery rose 11% on Monday.
