Paramount Skydance Settles with State AGs, Allowing Warner Bros. Merger to Proceed
Paramount Skydance is set to settle a lawsuit filed by state attorneys general that had threatened to block its $110 billion merger with Warner Bros. Discovery (WBD). The antitrust case led by California's Attorney General Rob Bonta was expected to delay the deal until mid-2027 and cost Paramount hundreds of millions in fees, including an estimated $650 million per quarter from a ticking fee after September 30. The merger would combine two major film studios—Paramount and Warner Bros.—along with TV networks like CBS and streaming services such as Paramount+ and HBO Max. The deal had already received regulatory approvals but faced legal challenges in mid-July when California and 11 other states sued to block it on antitrust grounds. Settling the lawsuit removes a major obstacle, allowing the merger to proceed without further delay or financial penalties from state-level litigation.
Topics: antitrust legal_disputes media_mergers