Paramount settles lawsuits, clears path for Warner Bros. acquisition

Paramount Skydance Corp. and a coalition of states led by California reached a settlement on September 21, resolving the antitrust lawsuits that had been the last major obstacle to a $110 billion merger with Warner Bros. Discovery. The deal, one of the largest in Hollywood history, can now proceed after weeks of legal wrangling that had investors and studio executives alike watching the calendar with increasing anxiety. The urgency was real. Paramount faced a $7 million daily “ticking fee” owed to WBD shareholders starting after September 30, which works out to roughly $49 million a week for every week the deal stayed in limbo. What the states wanted, and what they got The legal fight kicked off in July when twelve state attorneys general, led by California AG Rob Bonta, filed an antitrust suit arguing the merger would concentrate too much power in theatrical film distribution and basic cable television. Their core claim: the combined entity could control somewhere between 25% and 30% of US box office revenue and cable market share. The settlement hinged on Paramount Skydance making concrete commitments rather than structural divestitures. The company agreed to invest $1.5 billion ...