Paramount settles lawsuit blocking $110 billion Warner Bros. merger

This settlement will resolve the antitrust lawsuit filed by California, New York, Washington, and several other states to block Paramount’s big deal.

This settlement will resolve the antitrust lawsuit filed by California, New York, Washington, and several other states to block Paramount’s big deal.

by Emma Roth

Sep 21, 2026, 5:42 PM UTC

Image: The Verge

is a news writer who covers the streaming wars, consumer tech, crypto, social media, and much more. Previously, she was a writer and editor at MUO.

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 annual film releases, rules for the negotiations over cable channels owned by the combined company, what it will do with film lots and other property, and the availability of Pluto TV.

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. We’re confident this agreement does exactly that, memorializing a series of commitments that include 30+ films annually and expanded U.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. The fee would’ve cost Paramount about $7 million per day.

Though the Trump administration signed off on the $110 billion merger, California, along with Arizona, Colorado, New York, Washington, and others, sued Paramount and WBD in July over antitrust concerns. They claimed the megamerger would create a “media behemoth” that would “inflict substantial harm” on the entertainment industry. A judge granted the states’ request to pause the merger shortly after.

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