Paramount settles lawsuit with US states, helping clear way for $110bn merger with Warner Bros

Image caption, A coalition of states led by California had challenged the deal, raising concerns over competition across film and television.

ByFrancisco VelasquezBusiness reporter, Reporting fromNew York Published 21 September 2026, 18:30 BST Updated 1 minute ago Paramount Skydance has settled a lawsuit with dozens of US states, removing a major hurdle to its $110bn (£82.8bn) merger with Warner Bros Discovery.

California Attorney General Rob Bonta told a news conference that state officials agreed to terms after securing commitments to protect competition across film and television, and broadcasting.

Still, "the settlement is not a vote of support for this merger," Bonta said.

"It is not a blessing of the broader merger." David Ellison, the company's chief, has threatened to move studio operations out of California.

The settlement will help boost film production in the US, Bonta said.

Under the agreement, Paramount must release at least 30 films each year, he added.

The BBC has contacted Paramount for comment.