State settlement clears a major hurdle for Paramount’s Warner deal

Paramount Skydance has settled the antitrust lawsuit brought by California and 11 other states over its planned $110 billion purchase of Warner Bros. Discovery. The step does not complete the deal, since the settlement still needs court approval, but it removes a challenge that could have kept the takeover tied up for much longer. The states had warned that combining two major film and TV businesses could reduce output, raise prices, and hurt workers; Paramount agreed to increase U.S. film production, support workers affected by the merger, and adopt protections for CBS News and CNN’s editorial independence. If completed, the deal would put the Paramount and Warner studios, CBS, CNN, Paramount+, and HBO Max in one corporate group.