$110 Billion: Warner Bros. and Paramount Merger on Track for Final Approval

The $110 billion mega-merger between Paramount Skydance and Warner Bros. Discovery is moving toward final approval, as the company plans to reach an agreement with state attorneys general who sought to block the deal on antitrust grounds. The settlement includes establishing independent editorial boards for CNN and CBS and a $30 million fine per film if Paramount fails to meet its commitment to distribute 30 films annually.

The $110 billion mega-merger between Paramount Skydance and Warner Bros. Discovery is advancing toward final approval. According to reports in various media outlets, the company plans to reach an agreement with a group of state attorneys general, led by California Attorney General Rob Bonta, who sought to block the deal on antitrust grounds. The lawsuit was expected to go to trial in March, leaving the deal in uncertainty until mid-2027. The terms of the agreement have not yet been published, but sources told Reuters that the settlement includes establishing independent editorial boards for CNN and CBS, as well as a $30 million fine per film if Paramount fails to meet its commitment to distribute 30 films annually. The acquisition would unite two historic film studios, Paramount and Warner Bros., a portfolio of television networks, the CBS broadcast network, and two streaming services – Paramount+ and HBO Max. The deal has received regulatory approval in the US and other countries, and Paramount expects to complete it by September 30. California and 11 other states filed a lawsuit in mid-July to block the merger. In the following weeks, Paramount agreed to delay the merger until June 2027. Such a delay was expected to be costly for Paramount due to a "ticking fee" mechanism that would add approximately $650 million in cash to the deal each quarter.