Paramount Settles Antitrust Lawsuit to Clear Path for WBD Merger

Paramount has reached a settlement with California and 11 other states, resolving an antitrust lawsuit that sought to block its acquisition of Warner Bros. Discovery (WBD). The deal, valued between $110 billion and $111 billion, now has complete clearance to proceed, according to Paramount Chairman & CEO David Ellison.

Reporting from The Verge notes that the settlement includes a consent decree requiring the combined entity to release at least 30 theatrical films in the first two years and 32 in subsequent years over a five-year period. Paramount also committed to spending at least $300 million more on U.S. production than it did in 2025. The agreement comes just before a "ticking fee" would have cost Paramount approximately $7 million per day in payments to WBD shareholders.

While California AG Rob Bonta described the arrangement as the opposite of the 2018 Disney-Fox merger, the deal has faced sharp criticism. According to Ars Technica, former FTC Chair Lina Khan called the merger "facially illegal," and advocates from Free Press and Public Knowledge warned that the consolidation reduces competition for creative talent and scripts while potentially raising consumer prices.

Beyond the studios, the merger will combine the Paramount+ and HBO Max streaming services. Ars Technica reports the combined company will emerge with nearly $80 billion in debt. Additionally, the settlement includes the establishment of independent editorial boards for CNN and CBS, a point of contention for critics who argue these boards lack true independence.