Paramount-Warner Bros merger finally gets green light

Paramount has reached a settlement with a group of US states that clears the way for its takeover of Warner Bros Discovery, officials announced Monday, creating a Hollywood empire spanning television, news and cinema. Paramount, which is run by David Ellison, whose ultra-wealthy family has ties to US President Donald Trump, won a bidding war against Netflix in February for control of a stable of assets that includes Warner Bros Pictures, CNN and the HBO Max streaming service. The Trump administration approved the deal, 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. Financing for the deal reportedly includes about $24 billion in equity from the sovereign wealth funds of Saudi Arabia, Qatar and Abu Dhabi. David Ellison's father, billionaire Oracle founder Larry Ellison, also provided funding and a guarantee. 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. The deal includes several safeguards on these issues, including a board meant to protect CNN's editorial independence. The news comes just days after Trump banned CNN, Politico and MS NOW from the White House. The outlets are suing the administration to have the decision reversed. Paramount had threatened to move out of California if the state's attorney general, Rob Bonta, did not negotiate an end to the lawsuit. In their complaint, the 12 states argued the combined company would control roughly 27% of wide-release theatrical film distribution and a similar percentage of the basic cable channel industry. California led the suit, joined by Arizona, Colorado, Connecticut, Massachusetts, Minnesota, Nevada, New Jersey, New Mexico, New York, Oregon and Washington, all Democratic-led. Facts of the law Four states Massachusetts, New York, Connecticut and Minnesota had held out but concluded that fighting on without California was not worth the expense, Bloomberg reported. Bonta told reporters that protecting jobs was a major concern in his handling of the case and acknowledged that many people may be disappointed with his decision to strike a deal. "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," he said. 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. At least four of those films must be independent productions, and at least 20% must be blockbusters, Bonta said. The terms include a financial penalty if Paramount fails to meet the targets. According to a joint court filing, the deal also requires at least $300 million more in annual spending on US film production by Paramount and Warner Bros than in 2025. The companies must also keep both studios' production lots, honour labour agreements and commit funds to workforce training, the filing said. It also creates a News Editorial Independence Board to set editorial principles for the combined company's news channels, including CNN. Compliance would be overseen by an internal monitor, an independent trustee and a committee of five states, with the court retaining jurisdiction over enforcement. Paramount Skydance was formed on August 7, 2025, by David Ellison, through the merger of Skydance Media, Paramount Global, and National Amusements. The company trades under the ticker symbol "PSKY" on the Nasdaq. Shortly after its formation, Paramount Skydance began pursuing an unsolicited bid to acquire Warner Bros. Discovery and subsequently won a bidding war for the company in February 2026. Paramount Skydance's purchase of WBD was approved by the U.S. Department of Justice on June 12, 2026. However, on July 24, 2026, the proposed merger, which is facing widespread anti-trust legal action, was delayed until June 1, 2027.