{"id":900631,"date":"2026-09-21T23:34:12","date_gmt":"2026-09-21T23:34:12","guid":{"rendered":"https:\/\/www.newsbeep.com\/au\/900631\/"},"modified":"2026-09-21T23:34:12","modified_gmt":"2026-09-21T23:34:12","slug":"paramount-settles-with-us-states-clearing-way-for-warner-bros-merger","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/au\/900631\/","title":{"rendered":"Paramount settles with US states, clearing way for Warner Bros merger"},"content":{"rendered":"

Paramount has reached a settlement with a group of US states, clearing the way for its takeover of Warner Bros Discovery and creating a Hollywood empire spanning television, news and cinema.<\/p>\n

Paramount, which is run by David Ellison, whose ultra-wealthy family has ties to US President Donald Trump, won a bidding war against Netflix<\/a> in February for control of a stable of assets that includes Warner Bros Pictures, CNN and the HBO Max streaming service.<\/p>\n

The Trump administration approved the deal<\/a>, one of the largest media mergers in years, in June without demanding a change to its business, before 12 US states sued to block the transaction.<\/p>\n

Financing for the deal reportedly includes about $US24 billion ($33.7 billion) in equity from the sovereign wealth funds of Saudi Arabia, Qatar and Abu Dhabi.<\/p>\n

\"David<\/p>\n

David Ellison says the settlement represents “complete clearance” for the merger. (Reuters: Brendan McDermid)<\/p>\n

David Ellison’s father, billionaire Oracle founder Larry Ellison, also provided funding and a guarantee.<\/p>\n

Opponents in the movie industry said the combined company would slash jobs in a Hollywood already under pressure and reduce the number of films produced every year, while news media groups feared CNN’s independence could be compromised.<\/p>\n

The deal includes several safeguards on these issues, including a board meant to protect CNN’s editorial independence.<\/p>\n

\"The<\/p>\n

The merger brings together key TV networks CBS and CNN and streaming platforms HBO Max and Paramount. (Reuters: Mike Blake)<\/p>\n

The news came just days after Mr Trump banned CNN, Politico and MS NOW from the White House. The outlets are suing the administration<\/a> to have the decision reversed.<\/p>\n

Paramount had threatened to move out of California if the state’s attorney-general, Rob Bonta, did not negotiate an end to the lawsuit.<\/p>\n

In their complaint, the 12 states argued the combined company would control roughly 27 per cent of wide-release theatrical film distribution and a similar percentage of the basic cable channel industry.<\/p>\n

California led the lawsuit and was joined by Arizona, Colorado, Connecticut, Massachusetts, Minnesota, Nevada, New Jersey, New Mexico, New York, Oregon and Washington, all of which are Democratic-led states.<\/p>\n

Paramount approved to buy Warner Bros. How did we get here?<\/a><\/p>\n

The Trump administration has given the green light for Paramount Skydance to take over Warner Bros Discovery.<\/p>\n

Four states \u2014 Massachusetts, New York, Connecticut and Minnesota \u2014 had held out but concluded that fighting on without California was not worth the expense, Bloomberg reported.<\/p>\n

Mr Bonta told reporters the agreement was about “protecting people’s careers” but maintained it was not a vote in support of the merger.<\/p>\n

“I don’t think these two companies should merge \u2026 but that’s not something that we are focused on with our resolution here,” he said.<\/p>\n

“My job as attorney-general is to look at the facts and look at the law, weigh the options in front of us, and make the best decisions for the people of California.”<\/p>\n

Mr Ellison welcomed the settlement, which he said marked “complete clearance for this merger”.<\/p>\n

He added that “bringing Paramount and Warner Bros Discovery together will build that stronger Hollywood, creating expanded opportunity for our people and even more great entertainment for audiences around the world”.<\/p>\n

Terms of the agreement<\/p>\n

Mr Bonta said the settlement includes a commitment that the merged studio would produce 30 movies in each of the first two years of the deal, and 32 movies in each of the following three years.<\/p>\n

At least four of those films must be independent productions, and at least 20 per cent must be blockbusters, Mr Bonta said.<\/p>\n

\"The<\/p>\n

Rob Bonta says the agreement will protect people’s careers and “the livelihoods their families rely on”. (AP: Damian Dovarganes)<\/p>\n

The terms include a financial penalty if Paramount fails to meet the targets.<\/p>\n

According to a joint court filing, the deal also requires at least $US300 million more in annual spending on US film production by Paramount and Warner Bros than in 2025.<\/p>\n

The companies must also keep both studios’ production lots, honour labour agreements and commit funds to workforce training, the filing said.<\/p>\n

It also creates a News Editorial Independence Board to set editorial principles for the combined company’s news channels, including CNN.<\/p>\n

Compliance would be overseen by an internal monitor, an independent trustee and a committee of five states, with the court retaining jurisdiction over enforcement.<\/p>\n

Writers guild says merger will damage industry<\/p>\n

The Writers Guild of America (WGA) also filed a lawsuit, and both challenges were headed toward a full antitrust trial set to kick off in March.<\/p>\n

The WGA separately confirmed Monday that it had also settled its case.<\/p>\n

“We continue to believe the merger will cause damage to writers and the industry at large,” the guild said in a statement.<\/p>\n

“However, as a non-profit, the WGA must contend with the reality of forging ahead alone with no backing from government enforcers, with a complex antitrust lawsuit that would cost millions of dollars to pursue through trial.”<\/p>\n

The union added that Paramount had agreed to prohibit writer lay-offs at CBS News for five years and to pay $US17.5 million to WGA’s health fund, along with attorneys’ fees from the litigation.<\/p>\n

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