Paramount reaches settlement over Warner Bros. merger
CNBC • • business
Key Points:
- Paramount and Warner Bros. Discovery's $110 billion merger will proceed after reaching a settlement with state attorneys general who had filed an antitrust lawsuit to block the deal.
- The lawsuit, led by California Attorney General Rob Bonta, was scheduled for trial in March and could have delayed the merger until mid-2027.
- The settlement reportedly includes the establishment of independent editorial boards for CNN and CBS and a $30 million penalty per film if Paramount fails to release 30 movies annually.
- The merger combines major film studios, TV networks including CBS, and streaming services Paramount+ and HBO Max, and had already received approval from U.S. and international regulators.
- Paramount had agreed to delay the merger until June 2027 amid the lawsuit, incurring a ticking fee that could have cost $650 million per quarter, making the settlement financially advantageous.
