Paramount’s Acquisition Of Warner Bros. Discovery Update – Paramount Reportedly Reaches Settlement Deal In State Attorneys Lawsuit

As noted before, Warner Bros Discovery announced this past April that their shareholders had voted in approval of Paramount Skydance’s acquisition deal for the company. The United States Department of Justice had officially approved Paramount’s acquisition deal this past June but several state attorneys generals filed a joint lawsuit and the Writer’s Guild of America also filed a lawsuit this past July against Paramount trying to prevent the acquisition deal from going through. Paramount agreed to put their deal on hold until either June of 2027 or the lawsuits are resolved. WBD is the current media broadcast partner of AEW.

Bloomberg reported that Paramount has reached a settlement deal with California and the other states who had filed a lawsuit against the company attempting to block the merger deal.

It was reported that the settlement is expected to be officially announced later today.

It was also reported that the State Attorneys Generals had secured independent editorial boards for CBS and CNN as part of the terms for the settlement deal.

Wall Street Journal reported that Paramount and California State Attorney General had discussions about a range of concessions for the merger deal. These reportedly including a $1.5 billion investment in production in the state, a commitment not to sell either studio lot, and potential penalties if Paramount fails to honor their pledge to produce 30 movies a year after the merger with WBD.