Paramount’s Warner deal clears a major state antitrust hurdle

Paramount Skydance has agreed to settle a challenge from California and 11 other states to its proposed $110 billion purchase of Warner Bros. Discovery, removing a major obstacle once the court approves the deal. The acquisition would put major movie studios, streaming services and cable networks under one owner, prompting states to argue that it could mean fewer films and weaker competition in cable distribution. Instead of risking a trial that could have delayed closing into 2027, Paramount has accepted five years of commitments, including higher film output, at least $1.5 billion in additional U.S. production spending and separate negotiations for its cable channels. California says the agreement is not an endorsement of the merger, but it turns a potentially lengthy legal fight into enforceable operating rules and brings Paramount much closer to closing.