States Settle Paramount-Warner Bros. Lawsuit—Clearing Way For Merger To Go Through

0:00State attorneys general have reached a settlement with Paramount Skydance on their lawsuit over Paramount's planned merger with Warner Bros. Multiple outlets report, likely paving the deal with Warner. The 12 states suing Paramount over its planned$110 billion merger with Warner Brothers Discovery reached a deal with the media giant Bloomberg first reported, saying an anonymous source after reports over the weekend suggested the two sides were in advanced settlement discussions. States sued Paramount for allegedly violating antitrust laws with the deal, arguing the merger of the two media companies would result in reduced competition, less content being produced, and higher prices for consumers.

0:51While the exact details of the settlement are still unclear, Bloomberg reports the deal includes Paramount having to pay a financial penalty if it does not meet a commitment to release at least 30 films per year, and the creation of independent editorial boards for CBS and CNN, which will now both be under the Paramount umbrella. The Wall Street Journal reports Paramount will not sell any cable channels as part of the deal after earlier reporting suggested the media company could spin off channels like Comedy Central. The news of the deal comes after reports suggested several state AGs bringing the lawsuit opposed to the settlement talks for not going far enough, but Bloomberg reports the attorneys general ultimately acquiesced because they couldn't justify the cost of continuing the lawsuit without California, which has been the lead plaintiff in the case.

1:42The proposed settlement is likely to attract widespread opposition, as critics of the merger have decried the settlement talks and accused California Attorney General Rob Bonta of caving to the media companies. For more on this story, check out the article at the link in the description.

2:03Thank you.