Paramount settles with states that sued over Warner Bros. Discovery merger

Paramount Skydance reached an agreement to settle with 12 states that sued the media conglomerate earlier this year over its planned purchase of Warner Bros. Discovery, the two sides announced Monday.

During a press conference in Los Angeles, California Attorney General Rob Bonta — who led the coalition of state attorneys general suing to block the merger on antitrust grounds — said Paramount made several concessions that satisfied government officials.

“This includes more film production, protections for Hollywood workers and places guardrails that allows for robust cable negotiations and creates more choice,” Bonta told reporters. “This settlement is not a vote of support for this merger or a blessing.”

“We believe further consolidation in markets does not serve the American economy, consumers or competition well,” he added.

Paramount for months has been pursuing a multibillion-dollar acquisition of Warner Bros. Discovery, the sprawling media company and entertainment studio that owns major brands like Turner Sports and CNN.

Critics of the merger argue the deal if cleared would hand David Ellison, Paramount’s chief executive, sole power over what would be the largest media conglomerate on earth and hurt film and TV industry professionals.

Others have raised concern about Ellison’s close ties to President Trump and the sweeping changes he has implemented at CBS News since acquiring Paramount last year.

“Our goal has always been to build a stronger Hollywood — one with more stories told, greater choice for consumers and stronger competition,” Ellison said in a Monday statement. “That vision was validated by unanimous approval from competition authorities in nearly 70 jurisdictions worldwide, who agreed this deal is pro-competitive, pro-consumer and pro-worker.”

Paramount will now work to “complete clearance for this merger” with federal regulators, the owner said, “and look forward to putting these commitments into action.”

Warner Bros. Discovery has been eyeing an acquisition for the past several years and saw a previous deal with Netflix fall apart after Trump and some elected Republicans expressed doubt about the streaming platform’s attempt to purchase the company.

“I’m always willing to come to the table for honest good faith negotiations,” Bonta said. “I’d rather resolve the case or the issue in the boardroom instead of the courtroom, and that’s what happened here.”