Paramount Global and Skydance reached a settlement with California and 11 other US state attorneys general, resolving antitrust lawsuits that had threatened to block or delay their acquisition of Warner Bros. Discovery. The deal, valued at $110 billion across various source reports, had previously cleared a Department of Justice review in June 2026. The settlement was negotiated over the weekend, with an official announcement made on 21 September 2026.
The settlement includes commitments to release 30 movies annually from the combined studios, with financial penalties of $30 million per film shortfall and a potential forced sale of Paramount's Miramax stake if targets are not met. California Attorney General Rob Bonta characterised the settlement as necessary but not ideal, indicating conditional rather than enthusiastic approval, while noting it includes protections for jobs and market power restrictions.
Paramount Global (PARA) and Warner Bros. Discovery (WBD) are the primary equities directly involved in the transaction. PARA is the acquiring vehicle through the Skydance structure, and WBD is the target entity whose ownership transfers upon deal closing.
The settlement removes what Cnbc TOP described as a risk of delays extending to mid-2027 and hundreds of millions in dispute-related costs. The resolution of the 12-state legal challenge represents the final major regulatory obstacle identified in cluster reporting, with closing of the transaction now able to proceed.
Sources: Bloomberg Markets, BBC Business, Guardian Business, Cnbc TOP, SKY Business