Paramount Skydance’s settlement with a 12-state coalition has moved its planned Warner Bros. Discovery acquisition closer to closing, but the deal is not final yet.
California Attorney General Rob Bonta announced on Monday, Sept. 21, 2026, that the states had reached a proposed settlement over Paramount’s plan to acquire Warner Bros. Discovery. The agreement would resolve the states’ antitrust lawsuit, which alleged the merger would lower output, raise prices, and harm workers and consumers. The settlement still requires court approval.
U.S. District Judge Araceli Martínez-Olguín has set a Thursday, Sept. 24 hearing to address outstanding questions about the proposed consent decree before deciding whether to approve it.
What the settlement would require
The proposed consent decree turns several merger promises into five-year obligations for the combined company. The largest commitments focus on theatrical movies, domestic production, basic cable negotiations, worker support, free streaming access and editorial oversight.
Film output: The combined company would have to release at least 30 films a year in the first two commitment years, including at least 20 wide releases. In years three through five, that rises to at least 32 films a year, including at least 21 wide releases. At least four films each year must be independent films.
Theatrical windows: Films counted toward the annual commitment would need at least a 45-day theatrical-release window and could not appear on a subscription streaming service for at least 90 days after initial U.S. theatrical exhibition.
U.S. production spending: The merged company would have to spend at least $300 million more per year on production in the United States compared with the companies’ 2025 U.S. production levels, totaling at least $1.5 billion over five years.
Worker and community support: The settlement includes $9.5 million per year for five years for workforce training, career development, film programs and community arts organizations. The California Attorney General’s office described this as a $47.5 million workforce fund.
Independent films: The company would create an independent film fund and contribute $5 million per year, for a total of $25 million over the commitment period.
Cable negotiations: Paramount and Warner Bros. basic cable channels would have to be negotiated separately with distributors for five years, rather than bundled into one combined bargaining package.
News oversight: A five-member News Editorial Independence Board would monitor editorial principles for CNN and CBS News content produced mainly for U.S. distribution.
Free streaming: The combined company would have to continue offering Pluto TV or a substantially equivalent free, ad-supported streaming service during the commitment period.
The enforcement terms are detailed. If the combined company misses the annual film-release target and fails to cure the shortfall, the proposed decree would require it to divest Miramax Studios and pay $30 million per missed film. That money would be split among union health and retirement funds, the Motion Picture & Television Fund, and a National Association of Attorneys General fund for antitrust enforcement.
A material breach of the cable-negotiation rules could also trigger a divestiture process after a cure period and a court finding. The proposed decree identifies BET, VH1, Comedy Central, Smithsonian, Destination America and Science among the channels that could be subject to that remedy.
The WGA settled, but did not endorse the merger
The Writers Guild of America East and Writers Guild of America West also settled their lawsuit after the states reached terms. In its Sept. 21 statement, the WGA said it still believes the merger will damage writers and the broader industry, but continuing alone would require a costly antitrust trial without government enforcers backing the case.
The guild said its agreement includes a five-year prohibition on writer layoffs at CBS News Broadcast, a $17.5 million payment to the guild’s health fund and payment of attorneys’ fees from the litigation.
What viewers and subscribers may notice
For subscribers, the settlement does not mean immediate changes to Paramount+, HBO Max, Discovery+ or Pluto TV. It also does not promise lower prices. The terms mainly restrict how the combined company behaves after closing, especially around theatrical output and basic cable carriage talks.
The separate-negotiation rule for Paramount and Warner Bros. basic cable channels is meant to stop the merged company from using its larger portfolio as a single bargaining lever with distributors. Whether that translates into lower bills is uncertain. AP reported that analysts still expect consumer-price concerns around the merger.
The news-board provision may draw the most attention outside the entertainment industry because it covers CNN and CBS News. The proposed decree says the five-member board would monitor editorial principles and independence for U.S.-focused news and editorial content. The combined company’s board would appoint the members; government officials would not appoint or approve them.
The merger is closer, not finished
Paramount and Warner Bros. Discovery announced their merger agreement on Feb. 27, 2026. Paramount agreed to pay $31 per share and said the transaction valued WBD at $110 billion on an enterprise-value basis. In August, Paramount said it had satisfied the regulatory clearances required under the merger agreement across 68 countries, but the state and WGA lawsuits remained major barriers.
If the court approves the consent decree, the merger could move toward closing. If the judge demands changes, the parties may need to provide more answers or revise the terms before the case can be resolved.
For now, the settlement changes the case from an effort to stop the merger into a test of whether the court accepts a five-year compliance framework around film output, domestic production, cable negotiations, worker support and news oversight.
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