Paramount Settles Warner Bros. Lawsuit With the States

The lawsuit brought by 12 states including California in order to block the planned $111 billion merger of entertainment giants Paramount Skydance and Warner Bros. Discovery will be settled.

A report in The New York Times, states that as a result of negotiations between the states and Paramount, the suit will be concluded, with Paramount agreeing to certain concessions.

Those include, per the Times, an “[agreement] to establish a board of journalists to ensure the editorial independence of CNN and CBS News” and a commitment from Paramount “to distributing 30 movies in theaters every year. The company also pledged to spend an additional $1.5 billion on film production over the next five years.”

The end of the suit will mark yet another twist in an already lengthy saga over control of Warner Bros. Discovery. After making it clear it was up for sale in 2025, WBD first signed an $82.7 billion deal with Netflix for the company, which currently includes networks like HBO and CNN, the Warner Bros. Pictures library, DC Comics, and many more properties.

But Paramount, controlled by the wealthy Ellison family, also coveted WBD, and refused to quit its pursuit. After upping its offer, WBD reversed course, backed out of its deal with Netflix, and agreed to terms with Paramount. (Their “superior” offer of $31 per WBD share in cash also included a $2.8 billion payment to Netflix for terminating the companies’ earlier agreement.)

When the deal is consummated, Paramount will control all of those aforementioned properties and networks, along with the rights to intellectual properties like Batman, Superman, the Looney Tunes, Harry Potter, and Game of Thrones. Paramount has also said it plans to merge its Paramount+ streaming service with WBD’s HBO Max.

The full effects of the deal will not be known for years to come.