By WYATTE GRANTHAM-PHILIPS and MICHAEL SISAK, Associated Press<\/p>\n
CHICAGO (AP) \u2014 California Attorney General Rob Bonta announced a settlement with Paramount in a lawsuit his state led challenging the company\u2019s acquisition of Warner Bros. Discovery on Monday, effectively paving the way for the\u00a0mega merger<\/a>\u00a0to move forward, with some new commitments.<\/p>\n The $81 billion blockbuster deal\u00a0will bring together<\/a>\u00a0two of Hollywood\u2019s oldest studios, key TV networks like CBS and CNN and streaming platforms HBO Max and Paramount+, as well as decades of libraries with titles ranging from \u201cHarry Potter\u201d to \u201cTop Gun.\u201d<\/p>\n But terms of Monday\u2019s agreement include what Bonta called \u201ccourt enforceable\u201d requirements for Skydance-owned Paramount to increase domestic production and establish monitoring of editorial independence of the company\u2019s news operations.<\/p>\n The settlement still needs final court approval. Bonta maintained that Monday\u2019s agreement \u201cis not a vote of support for this merger\u201d \u2014 but that he was always willing to come to the table and \u201cfind a strong solution that protects competition and consumers.\u201d<\/p>\n The coalition of states \u2014 including entertainment heavyweights like California and New York \u2014 sued to block the merger back in July, alleging a Paramount-Warner combo would \u201cextinguish competition\u201d and lead to fewer choices for consumers, particularly movie theatergoers and cable customers across the U.S.<\/p>\n Accompanied by a complaint also filed by the Writers Guild of America, the challenge was headed toward a full antitrust trial set to kick off in March.<\/p>\n Paramount said the allegations were meritless, but previously agreed to\u00a0delay its transaction well into next year<\/a>\u00a0so the case could make its way through court. It then\u00a0quickly called<\/a>\u00a0for a settlement \u2014 arguing that it had satisfied all regulatory clearances worldwide (including from\u00a0the Trump administration\u2019s Justice Department<\/a>\u00a0) and the states\u2019 challenge was its \u201cfinal obstacle.\u201d<\/p>\n