Paramount reaches deal with California, other states over Warner merger
The news comes after Paramount Skydance CEO David Ellison threatened to move the storied entertainment company out of Hollywood.
Sept. 21, 2026, 10:26 AM PDT / Updated Sept. 21, 2026, 1:37 PM PDT
By Daniel Arkin, Saba Hamedy and Steve Kopack
https://www.nbcnews.com/business/media/paramount-reaches-settlement-states-warner-bros-discovery-merger-rcna598645
Paramount reached an agreement with 12 states over its planned 110 billion dollar merger with Warner Bros Discovery. The agreement includes promises about movie production, news operations, workers, and cable channels. The settlement clears a major legal challenge, but some Hollywood groups still oppose the merger.
Facts:
Paramount and Warner Bros Discovery agreed to a settlement with 12 states.
The merger is valued at 110 billion dollars.
The combined company would include Paramount, Warner Bros, Paramount Plus, HBO Max, CBS News, and CNN.
The company agreed to release at least 30 films each year for the first two years and 32 films each year for the next three years.
The company agreed to invest more than 1 billion dollars in US production and film releases.
Independent editorial boards would oversee CNN and CBS News.
Paramount agreed to protect certain CBS News writing jobs for five years and pay 17.5 million dollars to a writers health fund.
The company agreed to pay 30 million dollars for each missed film target.
The company agreed to put 47.5 million dollars into a worker training and career development fund.
The merged company must negotiate Paramount basic cable channels separately from Warner basic cable channels.
The Justice Department had already approved the merger in June.
The European Commission approved the deal with conditions in July.
AMC Theatres and Regal Cinemas support the merger.
Many actors, writers, and producers oppose the merger.
SAG AFTRA said the settlement addresses some concerns about production and investment.
The Writers Guild of America still opposes the merger.
Paramount said the merger is lawful and would increase competition and benefit consumers and workers.