LOS ANGELES, United States — Paramount has reached an agreement with 12 American states to resolve an antitrust lawsuit challenging its $111 billion acquisition of Warner Bros. Discovery, removing a major legal obstacle to a merger that would bring CNN, CBS News, and two of Hollywood’s largest film studios under common ownership.
The settlement, announced on Monday, September 21, 2026, requires Paramount to establish an editorial independence board for CNN and CBS News, increase domestic film production, and provide financial assistance to entertainment industry workers affected by the merger.
The agreement remains subject to federal court approval.
California Attorney General Rob Bonta, who led the coalition of states challenging the acquisition, announced the settlement at a news conference in Los Angeles.
“This settlement is not a vote of support for this merger,” Bonta said, according to NPR.
He maintained that the proposed combination raised competition concerns but said the agreement provided enforceable protections for consumers and the entertainment industry.
CNN and CBS to Come Under Common Ownership
The acquisition would combine Paramount’s CBS television network, Paramount+ streaming service, and film studios with Warner Bros. Discovery’s CNN, HBO, HBO Max, and other entertainment properties.
Paramount, led by Chief Executive David Ellison, has agreed to establish a board intended to protect the editorial independence of CNN and CBS News.
The proposed News Editorial Independence Board will comprise five journalists responsible for overseeing editorial standards and addressing disputes concerning the news organisations’ independence.
The agreement also provides for independent monitoring of Paramount’s compliance with the settlement.
The ownership change would place CNN and CBS News within the same corporate group, although the settlement requires safeguards against inappropriate corporate interference in editorial decisions.
The arrangement follows concerns raised during the antitrust proceedings about the concentration of television news and entertainment assets under a single owner.
Connecticut Attorney General William Tong said he had sought the separation of CNN and CBS from the combined company but that the states ultimately agreed to the negotiated settlement.
Paramount Commits $1.5 Billion to US Film Production
Under the agreement, Paramount must increase its domestic film production expenditure by at least $300 million annually over five years, representing an additional $1.5 billion investment.
The company must also release at least 30 theatrical films annually during the first two years following the merger and 32 films annually during the subsequent three years.
At least four films each year must be independent productions.
Failure to meet the film-release commitments could trigger financial penalties of $30 million for each film below the required annual total, with proceeds allocated to industry workers and related organisations.
The agreement also provides for the potential sale of Miramax if Paramount fails to satisfy specified production requirements.
Paramount must retain its principal studio properties in Hollywood and Burbank for at least five years.
A separate $47.5 million fund will support workers affected by the merger, including those facing job losses.
The company has also agreed to negotiate distribution arrangements for its existing cable channels and those belonging to Warner Bros. Discovery separately for five years.
The provision is intended to address the states’ concerns that combining the companies’ television assets could reduce competition in negotiations with cable distributors.
Merger Could Be Completed by Early October
The settlement resolves the lawsuit brought by California and 11 other states, which had sought to prevent the acquisition on competition grounds.
The US Department of Justice had already approved the proposed transaction, but the state litigation prevented the companies from completing it.
Paramount and Warner Bros. Discovery now expect the merger to close by early October, subject to the remaining legal and administrative requirements.
Ellison welcomed the agreement, saying the companies could proceed towards completing the transaction.
The settlement also removes a potential financial burden for Paramount, which had agreed to pay Warner Bros. Discovery shareholders $7 million for each day the transaction remained incomplete after October 1.
The proposed merger would combine the companies’ film production, television broadcasting, streaming, and news operations within one of the largest media groups in the United States.
A five-state oversight committee, together with independent compliance officials, will monitor the merged company’s adherence to the settlement’s conditions.
The court must approve the agreement before its provisions become enforceable.
