Paramount reaches settlement with states over Warner Bros acquisition

Paramount has committed to distributing 30 movies in theaters every year, spending an additional $1.5 billion on film production over the next five years and creating a board to ensure the editorial independence of CNN and CBS News.

By Misty Severi

Published: September 21, 2026 5:10pm

California Attorney General Rob Bonta announced Monday that Paramount has agreed to settle a antitrust lawsuit with several states that now paves the way for its $111 billion acquisition of Warner Bros. Discovery.

California led a group of states in the lawsuit against Paramount in July, which warned that the potential merger with Warner Bros would harm competition by lowering output and raising prices and thereby hurt both workers and consumers.

The settlement includes a commitment from Paramount to distribute 30 movies in theaters every year, spend an additional $1.5 billion on film production over the next five years and create a board to ensure the editorial independence of CNN and CBS News.

"Let me be clear: This settlement is not a vote of support for this merger," Bonta said in a statement. "But we believe this settlement, which resolves our antitrust concerns in every market alleged in our case, protects competition and consumer choice, and puts workers' needs, concerns, and futures first, is the best course of action.

"When we get down to brass tacks, what we heard over and over from people who would be most directly and immediately impacted by the merger is that what matters most is consistent film output, domestic production, and protecting the livelihoods of workers above and below the line," he continued. "There’s no Hollywood without the people who work on and off screen to make the magic happen, and today’s settlement protects workers, jobs, and Hollywood.”

The blockbuster merge would create one of the largest entertainment companies in the world, according to the New York Times, and would give Paramount control over CNN and CBS News. The merged company would also own two major streaming services, Paramount+ and HBO Max.

A court still needs to approve the deal, which would see Paramount sell off parts of the company if it fails to meet its obligations to produce and distribute the 30 films each year.

Misty Severi is a news reporter for Just The News. You can follow her on X for more coverage.