Paramount settles with states after New York drops holdout over Warner Bros. Discovery deal

A coalition of states led by California has settled with Paramount, and New York has dropped its opposition. The settlement requires Paramount to spend at least $300 million more a year on U.S. film production.

A coalition of states 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. New York has dropped its resistance to the terms, removing what had been the last major holdout among the states. The office stressed the deal does not amount to an endorsement, or "blessing," of the merger.

The multistate settlement requires Paramount to spend at least $300 million more each year on U.S. film production than it did in 2025. It also requires a minimum number of theatrical releases each year. A five-state committee will enforce the terms, with possible divestitures if Paramount or Warner Bros. Discovery breach their obligations.

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 a year in 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. Davenport's office says the terms are court-enforceable.

Davenport also announced a settlement requiring the merged company to set up an editorial-independence board for CNN and CBS.

Under the California settlement, Paramount and Warner Bros. Discovery must continue negotiating their cable packages separately. California will select a trustee to monitor Paramount's compliance with its terms. Paramount had earlier discussed a $1.5 billion investment in California as part of efforts to clear the deal.

The agreements follow months of state-level scrutiny of the merger. With New York no longer holding out, the last major state objection to the deal has been removed.