LOS ANGELES — The settlement requires Paramount Skydance to spend at least an additional $1.5 billion on U.S. film production over five years compared to 2025 levels. It also establishes a $47.5 million Workforce Fund to support training and career development for workers displaced by the merger over the same five-year period.

Under the terms of the agreement, Paramount Skydance must release 30 films annually, including 20 wide releases, in the first two years. The company must release 32 films annually, with 21 wide releases, in years three, four, and five of the agreement. Failure to meet these film output requirements triggers a Miramax Studios divestiture and $30 million penalties per missed film.

Paramount Skydance will contribute $5 million annually to an independent film fund, totaling $25 million. The settlement includes restrictions on how the company handles cable negotiations to help keep prices competitive. It also includes the creation of independent editorial boards and CBS News to safeguard their editorial independence.

The news editorial independence board must be established within 180 days of closing and comprise five established journalists, each with at least 10 years of experience. No more than two members of the news editorial independence board may be affiliated with the same political party. The Writers Guild of America settled its lawsuit aiming to block the merger separately.

The coalition of state attorneys general included Arizona, California, Colorado, Connecticut, Massachusetts, Minnesota, New Jersey, New Mexico, Nevada, New York, Oregon, and Washington. The states' lawsuit alleged the merger would harm competition by lowering output and raising prices. The settlement is pending approval by the court.

Labor unions expressed support for the resolution. "I want to take this opportunity to thank AG Bonta for a job well done in settling with Paramount and achieving protections for workers, enforceable safeguards and other important commitments from the company as the merger may now move forward," IATSE International President Matthew D. Loeb said. Directors Guild of America National Executive Director Russell Hollander said he congratulated the parties on reaching an agreement that addresses a number of critical concerns related to the Paramount/WBD merger.

Why It Matters

The settlement addresses allegations that the merger would reduce market competition and increase costs for consumers and workers. By mandating specific spending levels and film output quotas, the agreement attempts to preserve domestic production volume and protect employment in the entertainment sector. The creation of independent editorial boards for major news outlets aims to maintain journalistic integrity during corporate consolidation.

The resolution allows the $111 billion transaction to proceed after facing legal challenges from multiple state authorities and labor organizations. The financial penalties for failing to meet production targets provide a mechanism for enforcement, while the workforce fund offers direct support to employees affected by the corporate restructuring. Court approval remains a necessary final step before the merger can officially close.

Timeline

On February 28, 2026, Paramount Skydance agreed to a $111 billion acquisition of Warner Bros. Discovery.

On September 21, 2026, Paramount Skydance agreed to a settlement with California Attorney General Rob Bonta and a coalition of 12 state attorneys general to resolve antitrust litigation over its merger with Warner Bros. Discovery. Also on September 21, 2026, Sean M. O’Brien stated that the Teamsters Union supports the settlement agreement announced that day by California Attorney General Rob Bonta to move forward the pending merger between Paramount Skydance and Warner Bros. Discovery.

What's New

Additional reporting indicates that Warner Bros. Discovery CEO David Zaslav told staffers in a memo that the merger is expected to close no later than early October.

Discovery. Paramount Skydance agreed to pay Warner Bros. Discovery shareholders a $7 million daily fee starting October 1 if the transaction does not close. David Ellison said, "Our goal has always been to build a stronger Hollywood — one with more stories told, greater choice for consumers and stronger competition."

How Sources Differ

Regarding the California Attorney General, Sean M. O’Brien said the Teamsters Union supports the settlement agreement announced that day by California Attorney General Rob Bonta to move forward the pending merger between Paramount Skydance and Warner Bros. Discovery. Another entry from the California Office of the Attorney General press release noted that California Attorney General Rob Bonta led a coalition of 12 attorneys general in securing the settlement.

Regarding Paramount Skydance, he said the Teamsters Union supports the settlement agreement announced that day by California Attorney General Rob Bonta to move forward the pending merger between Paramount Skydance and Warner Bros. Discovery.

Regarding Warner Bros. The California Office of the Attorney General press release stated that Paramount Skydance agreed to a settlement with California Attorney General Rob Bonta and a coalition of 12 state attorneys general to resolve antitrust litigation over its merger with Warner Bros. Discovery. Rob Bonta said, "Today, we have secured a settlement that resolves our antitrust concerns of the Warner Bros./Paramount merger — concerns that the merger will lower output and increase prices — by guaranteeing massive investment in domestic film production." David Zaslav told staffers in a memo that the merger is expected to close no later than early October.