Paramount Settles Antitrust Lawsuits to Clear Path for $110 Billion WBD Merger

Paramount has reached a settlement with California and 11 other states, as well as the Writers Guild of America, resolving antitrust lawsuits that sought to block its acquisition of Warner Bros. Discovery (WBD). The deal, valued at approximately $110 billion, allows for the merger of two of the largest movie studios and the combination of streaming services Paramount+ and HBO Max.

Reporting from The Verge notes that the settlement includes requirements to protect competition. The merged entity must release at least 30 films theatrically in the first two years and 32 in subsequent years, with 20% being "tentpole" blockbusters with budgets exceeding $50 million. Failure to meet these quotas requires the company to divest Miramax Studios and pay $30 million per missed film. Additionally, the company must maintain a free streaming service, such as Pluto TV, and spend at least $300 million more on U.S. production than it did in 2025.

To ensure editorial independence at CNN and CBS, the agreement establishes a news editorial independence board consisting of five journalists with at least ten years of experience. Paramount Chairman & CEO David Ellison stated the agreement serves the creative community and consumers, while California AG Rob Bonta described the settlement as a way to protect consumer choice and worker needs.

However, the merger faces significant criticism. According to Ars Technica, Lina Khan, who chaired the Federal Trade Commission during the Biden administration, called the merger "facially illegal," and John Bergmayer of Public Knowledge warned that the deal reduces streaming choices and increases prices for consumers. The Wall Street Journal reported that the combined company will emerge with nearly $80 billion in debt. The settlement arrives just before a "ticking fee" would have cost Paramount approximately $7 million per day in payments to WBD shareholders.