Paramount, States Near Settlement Framework for Warner Bros. Discovery Merger

California Attorney General Rob Bonta is leading a coalition of state officials challenging Paramount Skydance’s proposed $111 billion acquisition of Warner Bros. Discovery, as the parties move toward a settlement that could clear the path for a landmark Hollywood merger. Actor Mark Ruffalo has also urged regulators to oppose the deal.

Paramount Skydance Corp. has reportedly reached a settlement framework with the states challenging the transaction, according to FOX Business senior correspondent Charlie Gasparino, who said weekend negotiations produced an agreement. The development follows a temporary restraining order that paused the proposed combination.

Bonta and other state attorneys general sued to block the deal, which was initially expected to close during the third quarter of this year. Bonta’s office did not immediately respond to a request for comment.

PARAMOUNT-WBD MERGER ON HOLD AFTER JUDGE GRANTS TEMPORARY RESTRAINING ORDER

Paramount Skydance Corp. (Eric Thayer/Bloomberg via Getty Images)

Under the proposed framework, Paramount would commit to producing films in California and across the United States, maintaining its headquarters in California and releasing 30 movies annually, Gasparino reported. CNN would retain an independent editorial structure.

Bloomberg, The New York Times and The Wall Street Journal have also reported that the parties were nearing an agreement.

WARNER BROS DISCOVERY SHAREHOLDERS APPROVE PARAMOUNT SKYDANCE DEAL

Paramount CEO David Ellison. (Charly Triballeau/AFP via Getty Images)

The Justice Department announced earlier this year that it had closed its antitrust investigation into Paramount Skydance’s proposed acquisition of Warner Bros. Discovery, concluding that the transaction was unlikely to harm competition or consumers.

The department’s Antitrust Division said its eight-month review examined more than 2 million documents and determined that the deal could strengthen competition across the media and entertainment industry, including streaming, traditional television and theatrical film distribution. State attorneys general nevertheless retain independent authority to enforce antitrust laws.

Paramount CEO David Ellison, the son of Oracle co-founder Larry Ellison, took control of the company last year after Skydance Media and Paramount Global completed an $8 billion merger. Completing the Warner Bros. Discovery transaction would give Ellison one of Hollywood’s most extensive portfolios of entertainment assets.

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