Twelve states and Hollywood writers who opposed Paramount’s acquisition of Warner Bros. Discovery have reached a settlement, clearing the path for the $81 billion US megamerger to proceed with certain new commitments. The deal will merge two historic Hollywood studios, along with prominent TV networks and streaming services, bringing together a vast library of content that includes iconic titles like “Harry Potter” and “Top Gun.”
As part of the settlement announced by California Attorney General Rob Bonta, Paramount has agreed to boost domestic film production by investing at least an additional $1.5 billion US over the next five years and to ensure editorial independence in its news operations. The agreement is pending final approval from a judge. Bonta emphasized that the resolution aims to safeguard people’s careers and livelihoods in California, without expressing support for the merger.
Paramount CEO David Ellison welcomed the settlement, describing it as a green light for the merger. He highlighted the potential for a stronger Hollywood and expanded opportunities for industry professionals, promising enhanced entertainment for global audiences. The coalition of states, including California and New York, had filed lawsuits in opposition to the merger, citing concerns about diminished competition and choices for consumers.
The Writers Guild of America, which also challenged the merger, confirmed reaching a settlement on Monday. While expressing continued concerns about the impact on writers and the industry, the guild acknowledged the reality of moving forward independently with the lawsuit, following the states’ settlement with Paramount. Paramount has agreed to safeguard against writer layoffs at CBS News for five years and to contribute $17.5 million US to the WGA’s health fund, along with covering legal fees.
Paramount had previously postponed the merger to allow the legal challenges to proceed, asserting that it had obtained regulatory approvals globally, including from the Trump administration’s Justice Department. Critics of the settlement raised alarms about further industry consolidation and the potential negative repercussions, such as layoffs and increased costs for consumers.
