Paramount settles state challenge to $110 billion Warner Bros. Discovery deal

Paramount reached a proposed settlement with California and 11 other states that removes their antitrust lawsuit as an obstacle to its planned $110 billion acquisition of Warner Bros. Discovery. The consent decree requires minimum theatrical output for five years, including 30 films in each of the first two years and 32 annually afterward, plus at least $300 million in additional U.S. production spending compared with 2025. Missing a required film would trigger a $30 million payment per film and require Paramount to divest Miramax. The agreement also preserves a free streaming service and establishes an editorial-independence board for CBS and CNN, but it still requires court approval.