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ABSTRACT

Paramount Skydance reached settlements on Monday with a coalition of 12 state attorneys general and with the Writers Guild of America over separate lawsuits that had sought to block its acquisition of Warner Bros. Discovery, according to the sources. California Attorney General Rob Bonta, who led the states' case, announced the agreement at a press conference, saying it was not an endorsement of the merger. The settlement still requires final approval by a judge, according to PBS NewsHour and NPR. Terms include commitments on domestic film production, an independent editorial board to monitor news operations at CBS and CNN, and a trustee to monitor compliance. The states sued in July, alleging the combination would reduce competition and raise prices; the Writers Guild sued separately, arguing it would cut pay and worsen working conditions for film and television writers.

NPR News

Paramount settles state and writers' union suits over Warner Bros. Discovery takeover

Sep 21, 2026, 12:40 PM

Paramount Skydance reached settlements on Monday with a coalition of 12 state attorneys general and with the Writers Guild of America over separate lawsuits that had sought to block its acquisition of Warner Bros. Discovery, according to the sources. California Attorney General Rob Bonta, who led the states' case, announced the agreement at a press conference, saying it was not an endorsement of the merger. The settlement still requires final approval by a judge, according to PBS NewsHour and NPR. Terms include commitments on domestic film production, an independent editorial board to monitor news operations at CBS and CNN, and a trustee to monitor compliance. The states sued in July, alleging the combination would reduce competition and raise prices; the Writers Guild sued separately, arguing it would cut pay and worsen working conditions for film and television writers.

Context

The deal would combine Warner Bros. Studios and Paramount Pictures, the CBS and CNN television networks, the HBO Max and Paramount+ streaming platforms, and libraries including Harry Potter, DC Comics, Star Trek and Top Gun, according to the sources. The coalition of states that sued included California, New York, Connecticut, Massachusetts, Minnesota, New Jersey, Oregon and Colorado, among others, according to the LA Times and other sources. According to the LA Times, the two challenges were headed toward an antitrust trial in California in March before the settlements.

Under the settlement, Paramount agreed to release at least 30 films theatrically each year for the first two years and 32 films annually for the following three years, according to the Straits Times, NPR and the New York Post. The Straits Times and Al Jazeera report a financial penalty of about $30 million per film if the company falls short, with the Straits Times saying most of the money would go into funds to support workers; the New York Post reports that failing the release thresholds in a given year would force Paramount to sell Miramax Studios. Paramount also committed to spend at least $300 million more each year on domestic production, according to the Straits Times and NPR, a figure the New York Post describes as $1.5 billion over five years. The New York Post also reports requirements to negotiate cable deals separately and to raise domestic production to 20% or 30% of all films from 5% currently if Congress passes certain tax credits. The Straits Times reports Paramount promised not to raise rates on theatre operators for three years.

Paramount agreed to establish a board intended to protect editorial independence at CBS and CNN, according to the sources, with Al Jazeera and the New York Post describing independent editorial boards and NPR describing a board meant to insulate the news operations from corporate intervention. A trustee will monitor compliance, and Bonta said the states intend to take the company to court if it fails, according to NPR. The Straits Times reports the agreement avoided a forced sale of cable assets such as CNN or Paramount's film franchises. The LA Times, reporting before the settlement was announced, said it was unclear whether a proposed deal would require Paramount to sell off assets, which Bonta had repeatedly insisted upon.

The Writers Guild of America confirmed it settled its case separately, saying it still believes the merger will damage writers and the industry. According to PBS NewsHour, Paramount agreed to prohibit writer layoffs at CBS News for five years and to pay $17.5 million to the union's health fund plus attorneys' fees. Al Jazeera, citing Bloomberg, reported the guild reached its settlement over the weekend and that terms included concessions for workers and headcount requirements at both CBS and CNN. The Straits Times reports the states' settlement left the union to proceed alone with no backing from government enforcers.

Paramount has argued the merger would create a company able to compete with Netflix, Amazon, Apple and Disney, according to NPR and the LA Times. The company said earlier in 2026 that the merger would mean $6 billion in savings, partly through cost cuts likely to affect Hollywood jobs and the CNN and CBS newsrooms, according to the Straits Times. NPR reports Paramount borrowed more than $54 billion for the bid and that the combined company would owe up to $87 billion including Warner's existing debt, while the Straits Times reports the combined company is expected to hold $80 billion in debt. Unions at various divisions of both companies are predicting significant layoffs, according to NPR.

Trump administration regulators cleared the deal, and antitrust authorities in other jurisdictions including the European Union and Britain have also cleared it, according to the Straits Times. NPR reports the Federal Communications Commission approved a large infusion of foreign cash to finance the deal on Sept. 18, ruling the merged company could be 49.5% owned by foreign interests, including sovereign wealth funds of Saudi Arabia, Qatar and Abu Dhabi, and could go up to 100%; Paramount promised the stakes would be silent, non-voting shares, according to NPR. Al Jazeera reports Paramount Skydance is owned by Larry Ellison, a close ally of President Donald Trump, and is run by his son David Ellison, raising concerns the relationship could influence coverage. NPR reports David Ellison hired Bari Weiss as CBS News editor in chief and that CNN recently joined MS NOW and Politico in suing the administration over First Amendment claims.

The settlements help Paramount avoid a daily fee owed to Warner Bros. Discovery shareholders once the deal does not close after Sept. 30, according to the Straits Times, Al Jazeera and the New York Post, which reports the fee at roughly $7 million a day, or about $650 million a quarter, and says it takes effect Oct. 1. The Straits Times and Al Jazeera report the fee at $7 million a day. The LA Times reports Paramount lawyers planned to ask a federal judge in Oakland to require the states and the Writers Guild to post a bond of $1.88 billion to cover delay-related costs should Paramount prevail; the New York Post reports the bond figure at roughly $1.9 billion and says the states and union balked at the request.

Market reaction differed across reports. Al Jazeera says Paramount Skydance jumped 10% in midday trading before closing down 3%, while the New York Post says Paramount shares slumped 2.9% and the Straits Times says Paramount pared back earlier gains. Warner Bros. Discovery rose more than 10 per cent according to the Straits Times, 11% according to Al Jazeera and nearly 11% according to the New York Post. The Straits Times reports the settlement delighted Warner Bros. shareholders but drew criticism from merger opponents who say it will hurt Hollywood jobs.

All Perspectives
California Attorney General Rob Bonta: Called the settlement a strong antitrust outcome and a strong solution that protects competition and consumers, citing more production, more choice and guardrails keeping the industry competitive. He said he does not think the two companies should merge, but that this was not the focus of the resolution, and that the agreement was not a vote of support for or a blessing of the merger. He said the agreement was about protecting people's careers and livelihoods, and that more production means more work at home.
Paramount CEO and Chairman David Ellison: Said the goal has always been to build a stronger Hollywood with more stories told, greater choice for consumers and stronger competition; that the vision was validated by unanimous approval from competition authorities in nearly 70 jurisdictions; and that having addressed the state attorneys general's and the Writers Guild's concerns, the company has complete clearance for the merger and looks forward to putting the commitments into action. He thanked the states, California Governor Gavin Newsom and the union.
Writers Guild of America: Said it continues to believe the merger will cause damage to writers and the industry at large, but that now the attorneys general have settled with Paramount, the nonprofit guild must contend with the reality of forging ahead alone, with no backing from government enforcers, in a complex antitrust lawsuit that would cost millions of dollars to pursue through trial.
Seth Stern, Freedom of the Press Foundation: Told Al Jazeera that an independent editorial board for CNN and CBS is a weak half-measure, that the fish rots from the head and this fish is headed by a compromised oligarch with a history of throwing journalists under the bus to advance his business interests. He said the board poses its own First Amendment problems when created pursuant to a settlement with the government, and that it is unclear how the attorneys general can constitutionally hold Paramount accountable if the board does not do its job without themselves interfering in content.
Alvaro Bedoya, American Economic Liberties Project: Said in a statement that billionaires have yet again bribed, censored and bullied their way to the top, that layoffs will follow, that people from Los Angeles to Atlanta will lose their jobs, small businesses will lose their contracts, and cable bills and movie tickets will be even more expensive.
Connecticut Attorney General William Tong: Said in a statement that Connecticut wanted and demanded full divestiture of CNN and CBS News, that it wanted to save ethical and independent journalism and fought aggressively for that remedy, that Paramount resisted the creation of an independent editorial board until last week, and that he is deeply disappointed they could not do more.
Rep. Jamie Raskin and Rep. Ro Khanna: Urged the state attorneys general to resist a settlement. Raskin wrote that the attorneys general should hang tough against the giant proposed merger. Khanna wrote that Paramount, run by the Ellisons, should not own both CBS and CNN, and that California must not cave and take a deal that leaves both under the same owner.
Fiona Scott Morton, Gene Kimmelman and Norm Eisen: Wrote in an opinion essay that Paramount's threat to leave Los Angeles is an empty ploy that does not make business sense and that the attorney general should call that out rather than give in to it. They wrote that Paramount would be sinking the cost of moving before it knows what businesses it owns, making expensive strategic mistakes inevitable, and that a company that raises its own costs while leaving behind the most valuable labor in the industry threatens itself rather than California. They noted Paramount still lists its Times Square offices in New York as its corporate headquarters and said Ellison may be planning to move regardless of how the lawsuit resolves.
Paramount Skydance (company position on the deal): Maintains the deal to bring HBO, CNN, CBS, TBS, Comedy Central and two film and television studios together would create a stronger company able to withstand competition from Apple, Netflix, Google/YouTube and Amazon, and that the two studios on their own would not be strong enough to remain viable in the streaming age. Al Jazeera reports Paramount did not immediately respond to its request for comment.
California and Los Angeles officials urging a settlement: Governor Gavin Newsom, Los Angeles Mayor Karen Bass and Xavier Becerra, the Democratic nominee for California governor, publicly called on Bonta to settle the suit rather than prepare for trial, according to the LA Times. The New York Post reports Newsom warned state employment could suffer if the deal were blocked in court, and that Bass said she is going to fight like hell to protect production in the city.
Position not represented in the source reporting: Warner Bros. Discovery; Warner Bros. Discovery shareholders.

Where sources differ

  • Deal value: the Straits Times and Al Jazeera put the acquisition at $110 billion; NPR and the LA Times put it at $111 billion; PBS NewsHour and the New York Post report $81 billion.
  • Blockbuster film requirement: the New York Post reports each year's releases must include 20 blockbusters, while the Straits Times reports that at least 20 per cent of the films must be blockbusters. Both report a requirement of at least four independent films a year.
  • Penalty for missing film thresholds: the Straits Times and Al Jazeera report a penalty of about $30 million per film for failing to produce the promised number of movies, while the New York Post reports that falling below the release thresholds in a given year would force Paramount to sell Miramax Studios.
  • Domestic production spending: the Straits Times and NPR report at least $300 million more annually, while the New York Post frames the commitment as $1.5 billion over five years.
  • Combined company debt: the Straits Times reports about $80 billion, while NPR reports up to $87 billion.
  • New York Attorney General Letitia James's position: the LA Times, reporting before the settlement, said James and Connecticut's William Tong were not on board with Bonta's proposed settlement, while the New York Post reports that James coming to the table was the deciding factor in reaching the settlement.
  • Paramount share movement: Al Jazeera reports the stock jumped 10% in midday trading before closing down 3%; the New York Post reports a 2.9% decline; the Straits Times reports the shares pared back earlier gains.
  • Whether the settlement required asset sales: the LA Times, before the announcement, said it was unclear whether a deal would require divestitures that Bonta had repeatedly insisted upon, while the Straits Times reports the settlement avoided a forced sale of cable assets such as CNN or film franchises.
  • Timing of the Writers Guild settlement: PBS NewsHour says the WGA confirmed it settled on Monday, while Al Jazeera, citing Bloomberg, reports the guild reached a settlement over the weekend, and the New York Post says the union reached its own settlement over the weekend according to Bonta.
Gaps & Unknowns
  • None of the sources establishes whether a judge has approved the settlement, or when final sign-off is expected.
  • No source establishes the definitive total value of the transaction; reported figures range from $81 billion to $111 billion.
  • The full text of either settlement agreement is not provided by any source, and some terms are attributed only to unnamed sources or to a single outlet.
  • No source names the trustee appointed to monitor compliance or the members of the editorial independence board.
  • No source establishes whether the merger has formally closed, or whether any remaining regulatory or legal hurdles exist.
  • No source establishes the final size or composition of foreign ownership in the merged company beyond the FCC ruling reported by NPR.
  • None of the sources establishes how many jobs, if any, have been cut or will be cut, or the outcomes of the predicted layoffs.
  • Paramount's response to Al Jazeera's request for comment is not established by any source; Al Jazeera reports no immediate response.
  • Warner Bros. Discovery's own position on the settlements or on the merger's terms is not stated in any source.
  • The LA Times account appears to predate the announced settlement and its conclusions about which attorneys general supported the deal are not reconciled with the final outcome in the supplied reporting.
  • The sources do not establish whether Paramount will keep its California operations or move its Hollywood base, a condition reported as under discussion.
Sources & Further Reading
  1. The Straits Times — original — by The Straits Times
  2. PBS NewsHour — by Wyatte Grantham-Philips, Associated Press
  3. Al Jazeera English — by Al Jazeera Staff
  4. NPR News — by David Folkenflik
  5. New York Post — by Taylor Herzlich, Charles Gasparino
  6. LA Times — by Meg James

Read the original at The Straits Times

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