Paramount has reached a settlement with a dozen states that had sued to block its proposed acquisition of Warner Bros. Discovery, the company and state attorneys general announced Monday. The deal, which would create the world's largest media conglomerate, had faced antitrust challenges from a coalition led by California Attorney General Rob Bonta.
Speaking at a press conference in Los Angeles, Bonta said Paramount agreed to a series of concessions that address the states' concerns. These include commitments to increased film production, protections for Hollywood workers, and safeguards for cable negotiations that could expand consumer choice.
"This includes more film production, protections for Hollywood workers and places guardrails that allows for robust cable negotiations and creates more choice," Bonta told reporters. However, he stressed that the settlement "is not a vote of support for this merger or a blessing." He added, "We believe further consolidation in markets does not serve the American economy, consumers or competition well."
The acquisition, valued at billions of dollars, would give Paramount control over Warner Bros. Discovery's extensive portfolio, including Turner Sports and CNN. Critics have warned that the deal would concentrate enormous power in the hands of Paramount's chief executive, David Ellison, potentially harming film and TV industry professionals.
Additional concerns have centered on Ellison's close relationship with President Trump and the sweeping changes he has implemented at CBS News since taking over Paramount last year. These issues have fueled scrutiny of the merger from both political and industry observers.
In a statement, Ellison defended the deal, noting that it received "unanimous approval from competition authorities in nearly 70 jurisdictions worldwide, who agreed this deal is pro-competitive, pro-consumer and pro-worker." He added, "Our goal has always been to build a stronger Hollywood — one with more stories told, greater choice for consumers and stronger competition."
Paramount said it will now work to "complete clearance for this merger" with federal regulators and "look forward to putting these commitments into action." The settlement comes after a previous attempt by Warner Bros. Discovery to be acquired by Netflix fell apart amid opposition from Trump and some Republicans.
Bonta emphasized the value of negotiation, saying, "I'm always willing to come to the table for honest good faith negotiations. I'd rather resolve the case or the issue in the boardroom instead of the courtroom, and that's what happened here."
The settlement resolves the state-level legal challenge, but the merger still faces federal antitrust review. The outcome could set a precedent for how similar media consolidations are handled in the future, especially as the industry continues to grapple with regulatory and political headwinds.
