Key facts
- Paramount Global has settled with California and other states over its proposed $110 billion merger with Warner Bros. Discovery.
- The settlement includes independent editorial boards for CNN and CBS networks.
- Paramount faces a $30 million penalty per film if it falls short of a 30-movies-a-year release target.
- Shares of Warner Bros. Discovery and Paramount rose in premarket trading on the news.
- A coalition of 12 state attorneys general had sued to block the merger, citing antitrust concerns.
Paramount Global has reached a settlement with California and other states that were suing to block its proposed $110 billion merger with Warner Bros. Discovery, according to a source familiar with the matter. The settlement includes provisions for independent editorial boards for the CNN and CBS networks, and a $30 million penalty per film if Paramount fails to meet its promised target of releasing 30 movies a year.
Shares of Warner Bros. Discovery and Paramount Global saw premarket gains on the news, with Warner Bros. Discovery up 7.9% and Paramount up 6.8%. A coalition of 12 state attorneys general had filed suit to block the merger, citing antitrust concerns.
The settlement removes a significant hurdle for Paramount CEO David Ellison's bid to combine the studios and create a larger competitor in the entertainment landscape. The deal also helps Paramount avoid a daily $7 million fee if the merger does not close by September 30.