Paramount Settles 12-State Antitrust Suit, Clearing $11B Warner Bros. Acquisition

Paramount has resolved the primary state-level regulatory barrier to its $11 billion acquisition of Warner Bros., settling an antitrust lawsuit brought by a coalition of 12 states led by California Attorney General Rob Bonta. According to a report by Engadget (https://www.engadget.com/2264474/paramount-settles-us-state-antitrust-lawsuit-clearing-warner-bros-acquisition-plans/), Bonta announced the settlement at a press conference in Los Angeles, clearing the merger to close in early October.

Under the terms of the agreement, Paramount agreed to establish an independent editorial board to oversee CBS News and CNN, as well as commit to a minimum of 30 theatrical film releases per year. The completion of the deal will place Paramount chief David Ellison in control of major entertainment franchises, including the DC and Harry Potter properties.

The Writers Guild of America also settled its parallel lawsuit challenging the merger while maintaining its formal objections to industry consolidation. In a statement, the union said proceeding alone without government enforcement partners would have imposed millions of dollars in trial costs. As part of its settlement, Paramount agreed to ban writer layoffs at CBS News Broadcast for five years, cover the guild's legal fees, and pay $17.5 million into the WGA health fund.

The resolution drew criticism from some state officials who sought stronger remedies. Connecticut Attorney General William Tong noted his office pushed for structural separation rather than behavioral safeguards. "Connecticut wanted and demanded full divestiture of CNN and CBS News," Tong said in a statement. "We wanted to save ethical and independent journalism and news. We fought aggressively for that remedy. I am deeply disappointed that we could not do more. The complete abdication of the federal government's enforcement role in this fight left states with one arm tied behind our backs."

The settlement follows reports that Paramount had explored relocating outside California if a resolution could not be reached, prompting California Governor Gavin Newsom and Los Angeles Mayor Karen Bass to encourage a negotiated end to the litigation. With the U.S. Department of Justice and European Union regulators having previously cleared the transaction, the state settlement resolves the last major regulatory challenge facing the merger.