Paramount Skydance CEO David Ellison speaks at the Paramount Pictures presentation at CinemaCon, the official convention of Cinema United, on April 16, 2026 in Las Vegas, Nevada, USA.
Caroline Breman | Reuters
paramount skydance $110 billion merger warner bros discovery Multiple reports Monday said the company plans to settle with a group of state attorneys general who tried to block the deal on antitrust grounds, and the acquisition will move forward.
The lawsuit, brought by a California group led by Rob Bonta, had previously been scheduled to go to trial in March, leaving the deal in limbo until mid-2027.
Details of the agreement have not yet been made public. But sources told Reuters that the settlement includes the creation of independent editorial boards for CNN and CBS, as well as a penalty of $30 million per film if Paramount fails to meet its promise to release 30 films a year.
Spokespersons for Paramount and Bonta did not respond to requests for comment.
The acquisition will combine the two-tier film studios Paramount and Warner Bros. Discovery. Television network portfolio. Broadcast network CBS. and Paramount+ and HBO Max, two popular streaming services.
The deal had previously received approval from U.S. and other international regulators, and Paramount told investors it expected to close by September 30.
But California and 11 other states filed a lawsuit in mid-July seeking to block the merger, citing antitrust concerns in movies and pay-TV.
In the weeks that followed, Paramount agreed to delay the merger until June 2027, pending legal challenges. This delay will be costly for Paramount.
As part of the merger agreement, Paramount agreed to a so-called ticking fee that would take effect starting Sept. 30, meaning it would pay WBD shareholders an additional 25 cents per share each quarter until the deal is completed. This fee will add an estimated $650 million in cash value per quarter to the transaction.
