Paramount and California attorneys general settle over Warner Bros. Discovery deal
California's attorney general says the deal resolves antitrust concerns but is not an endorsement of the merger
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UpdateMonday, September 21, 2026 at 1:55 PM ET
New York, described as still holding out in the published piece, has now dropped its resistance, and the film-release and spending commitments are part of this same multistate settlement rather than a separate earlier one.
The multistate consent decree requires Paramount to spend at least $300 mln more each year on U.S. film production than it did in 2025, on top of minimum annual theatrical releases. A five-state committee will enforce the terms, with possible divestitures if Paramount and Warner Bros. Discovery breach their obligations. New York's resistance to a settlement has faded, removing what had been the last major holdout among the states.
UpdateMonday, September 21, 2026 at 1:50 PM ET
New Jersey Attorney General Davenport says the settlement also requires Paramount and Warner Bros. Discovery to set up a fund to buy independent films, with $5 million in annual contributions for five years. The companies must commit $47.5 million over five years and at least $1.5 billion toward domestic film production over the same period, under terms Davenport's office says are court-enforceable.
A coalition of attorneys general led by California has reached a settlement with Paramount over antitrust concerns tied to its merger with Warner Bros. Discovery, the state's attorney general said. The office stressed the deal does not amount to an endorsement, or "blessing," of the merger.
Under the settlement, Paramount and Warner Bros. Discovery must continue negotiating their cable packages separately. California will also select a trustee to monitor Paramount's compliance with the terms.
The agreement follows months of state-level scrutiny of the merger. Paramount had earlier discussed a $1.5 billion investment in California as part of efforts to clear the deal. A separate state settlement, reached earlier, required minimum film releases and higher production spending, overseen by a state committee, while New Jersey Attorney General Davenport announced a settlement requiring the merged company to set up an editorial-independence board for CNN and CBS. New York Attorney General Letitia James has continued to push for added worker protections and has resisted settlement terms sought by other states.
The California settlement removes another hurdle in a process that has already seen a string of state-level resolutions clear the way for the merger. With New York still holding out, the deal is closer to completion but not yet fully cleared, a distinction that matters for anyone pricing the transaction's timeline rather than its ultimate outcome.