Paramount Skydance and Warner Bros. Discovery move toward closing their roughly $110 billion merger after settling a lawsuit brought by 12 U.S. states to block the deal. California Attorney General Rob Bonta and the other states agree to end their antitrust case, described as the last major obstacle to the transaction. A California judge also formally allows the closing to proceed, removing the final court requirement.
The settlement addresses concerns that the merger would reduce film output and competition, and raise prices for consumers. Terms reported by multiple outlets include commitments by the merged company to increase domestic film production—30 films per year for the first two years, then 32 for the following three—and an additional $1.5 billion in U.S. production spending over five years. The deal also includes market “guardrails,” including independent negotiation of certain basic cable channels for five years. Bonta says the settlement resolves antitrust concerns without endorsing the merger.
Outlets also describe differing emphasis on what comes next. Some market-focused coverage highlights investor reaction and financing details, while others focus on the promised growth strategy rather than content cuts. Reporting also indicates the transaction is expected to close in early October, with a company announcement setting a targeted date of October 6.
