BreakingThis settlement will resolve the antitrust lawsuit filed by California, New York, Washington, and several other states to block Paramount’s big deal. by Emma RothSep 21, 2026, 5:42 PM UTCImage: The VergeEmma Roth is a news writer who covers the streaming wars, consumer tech, crypto, social media, and much more.

Paramount has reached a settlement with California and the 11 other states that sued to block its planned $110 billion acquisition of Warner Bros. Discovery.

The settlement removes a major roadblock standing in the way of the massive media merger. According to the proposed consent decree filed with the court, it includes requirements like minimum numbers of theatrical film releases over the next five years, starting with 30 in year one and two, and 32 in the following years, and a commitment to spend at least $300 million more on production in the US compared to what the companies spent in 2025.

At least four of the films produced must be independent films, and at least 20 percent must be “tentpole” blockbuster movies with $50 million-plus budgets, and releases on a minimum of 3,000 US screens within the first month. At a press conference announcing the agreement, California AG Rob Bonta called the arrangement “the opposite” of the 2018 Disney-Fox deal, where Fox’s film output dropped afterward.

Paramount Chairman & CEO David Ellison: We are grateful to Attorney General Bonta and his fellow AGs, as well as the WGA, for engaging in good faith to find a path forward to a resolution that serves all parties, and to Governor Newsom for his support throughout this process. Our shared aim was an outcome that best serves consumers, workers and — most importantly — the creative community so vital to the art of visual storytelling.

S. film production to help revitalize our industry here at home.

Our goal has always been to build a stronger Hollywood — one with more stories told, greater choice for consumers and stronger competition. That vision was validated by unanimous approval from competition authorities in nearly 70 jurisdictions worldwide, who agreed this deal is pro-competitive, pro-consumer and pro-worker.

Having now addressed the State AGs’ and WGA’s concerns, we have complete clearance for this merger and look forward to putting these commitments into action. Bringing Paramount and Warner Bros.

Discovery together will build that stronger Hollywood, creating expanded opportunity for our people and even more great entertainment for audiences around the world. The settlement comes just days before Paramount’s “ticking fee” was set to go into effect, which would require the entertainment giant to pay WBD shareholders 25 cents per share for each quarter the deal is delayed past September 30th.