Paramount reached a settlement on Monday, September 21, 2026, with a coalition of 12 states that had sued to block its takeover of Warner Bros. Discovery, removing one of the last obstacles to a combination valued at roughly $110 billion. The agreement ends litigation that California Attorney General Rob Bonta and 11 counterparts filed in July, when they argued the deal would reduce competition across film distribution, cable television, and streaming. With the states standing down, the merger is positioned to close.
Under the terms, Paramount agreed to a set of commitments rather than the sale of any assets. The company said it would establish a journalism board to oversee the editorial independence of CNN and CBS News, both of which the combined company will control. It also agreed to release 30 theatrical films each year and to direct an additional $1.5 billion toward film production over five years. No divestitures of networks or studios were required to resolve the case.
Bonta framed the outcome as a limit on the deal rather than an endorsement of it. “This settlement is not a vote of support for this merger,” he said, adding that “further consolidation doesn’t serve the American economy.” The states had positioned their suit as a check on concentration in an industry already reshaped by a run of mergers and by competition among streaming services.
The transaction brings together Paramount’s film studio with Warner Bros.’ production operations, along with the Paramount+ and HBO Max streaming services and the CNN and CBS News divisions. Financing has drawn scrutiny because sovereign wealth funds from Saudi Arabia, Qatar, and Abu Dhabi are set to hold just under half of the equity in the merged company. The Federal Communications Commission approved foreign ownership of about 49.5 percent, above the 25 percent level that typically applies.
Paramount is led by chief executive David Ellison, the son of Oracle co-founder Larry Ellison. Warner shareholders approved the sale in April, and the Department of Justice cleared it in May, leaving the state challenge as the remaining hurdle. The resulting company will rank among the largest entertainment groups in the world, with a library and distribution reach spanning theaters, cable, and streaming.
