Twelve states and the Writers Guild of America have settled lawsuits challenging Paramount’s planned buyout of Warner Bros. Discovery, according to Headline USA, adapted from Associated Press reporting. California Attorney General Rob Bonta, who led the states’ case, announced terms that he said were aimed at protecting workers—even as he maintained he still opposes the merger.
What the settlements require
Per Bonta’s announcement, Paramount pledged to increase film production in the U.S., commit millions of dollars to a fund supporting workers displaced by the merger, and set up monitoring of editorial independence across the company’s news operations. The settlements require final approval by a judge.
AG Bonta: settle—but not support
“I don’t think these two companies should merge,” Bonta said at a Monday press conference, adding that the agreement was about “protecting people’s careers” and livelihoods, not endorsing the deal.
Paramount touts “complete clearance”
Paramount CEO David Ellison welcomed the outcome, calling it “complete clearance for this merger,” according to Headline USA’s account. Ellison said combining Paramount and Warner Bros. Discovery would “build that stronger Hollywood,” expand opportunities for workers, and deliver more entertainment for audiences.
WGA settles, cites ongoing concerns
The Writers Guild of America said it settled separately, while continuing to believe the merger “will cause damage to writers and the industry at large.” The guild said it faced the reality of litigating alone “with no backing from government enforcers” and the high costs of a complex antitrust trial. As part of its settlement, the WGA said Paramount agreed to prohibit writer layoffs at CBS News for five years and to pay $17.5 million to the WGA health fund, plus attorneys’ fees.
What’s at stake in an $81 billion tie-up
The deal would join two legacy Hollywood studios and TV networks including CBS and CNN, along with streaming platforms HBO Max and Paramount+, and deep film libraries spanning franchises from “Harry Potter” to “Top Gun,” Headline USA reported. The coalition of states, including California and New York, had sued in July alleging a combined Paramount–Warner would “extinguish competition” and reduce choices for moviegoers and cable customers. A March antitrust trial had been scheduled before the settlements.
Critics warn of fallout
As news of the state settlements emerged, Alvaro Bedoya of the American Economic Liberties Project, a former Federal Trade Commission commissioner, issued a statement blasting the deal. “Today, billionaires have yet again bribed, censored, and bullied their way to the top,” Bedoya said, predicting layoffs, lost contracts for small businesses, and higher cable and movie-ticket prices.
What happens next
Headline USA reported that Paramount previously agreed to delay closing to allow court challenges to proceed, then pushed for settlement, arguing it had secured all regulatory clearances worldwide and calling the states’ case its “final obstacle.” Judicial review of the new settlements remains pending.
