Paramount Receives Go-Ahead to Buy Warner Bros Discovery

Five days ago officials in the Los Angeles mayor’s office and California Attorney General Rob Bonta’s office were told Paramount Skydance planned to announce it is leaving California, beginning October 1st.

Last month, David Ellison told executives he would commence moving Paramount out of the state by October 1st unless Attorney General Bonta agrees to settle the antitrust suit blocking the Warner Bros. merger.

“Paramount appeared poised to announce a dramatic exit from California, but the expected statement never arrived,” AOL reported. “The surprise delay left Los Angeles officials unsure whether David Ellison changed course or simply postponed the announcement.”

Today, the headlines read, “Paramount has reached a settlement with California and other states suing to block its proposed acquisition of Warner Bros.”

What headlines should say is “Paramount Receives Go-Ahead to Buy Warner Bros. Discovery.”

Monday, Sept. 21, 2026, Paramount Skydance settled the antitrust lawsuit brought by California Attorney General Rob Bonta and 11 other states.

That removes the last major U.S. legal block on Paramount’s roughly $110+ billion acquisition of Warner Bros. Discovery. The deal is expected to close in early October, just before a “ticking fee” of about $7 million per day/$650 million per quarter to WBD shareholders was set to start on Oct. 1.

Federal DOJ, FCC, and many international regulators had already cleared it.

What Paramount committed to pay California includes commitments focused on Hollywood jobs, production, and output, according to the Attorney General:

• $1.5 billion extra in U.S. film production over five years ($300 million more per year than 2025 levels). 
• Minimum theatrical releases: 30 films in years 1–2, then 32 films per year for the next three years. Miss a film and pay a $30 million penalty per missed title, directed to Hollywood union health/retirement funds (WGA, IATSE, DGA, etc.).
• Keep both the Paramount lot (Melrose) and Warner Bros. lot (Burbank) in California through at least 2031; do not sell them.
• $47.5 million fund for workers affected by the merger.
• Independent editorial-oversight boards for CNN and CBS News.
• Other terms on cable negotiations, Pluto TV availability, honoring union contracts, and workforce training.

Bonta called it “the opposite” of the 2018 Disney-Fox outcome, where film output later dropped, and stressed it is not an endorsement of the merger itself, the Verge reported.

”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 and providing enforceable guardrails to help keep cable prices competitive. Let me be clear: This settlement is not a vote of support for this merger. But we believe this settlement, which resolves our antitrust concerns in every market alleged in our case, protects competition and consumer choice, and puts workers’ needs, concerns, and futures first, is the best course of action,” Attorney General Rob Bonta said in a press statement. “When we get down to brass tacks, what we heard over and over from people who would be most directly and immediately impacted by the merger is that what matters most is consistent film output, domestic production, and protecting the livelihoods of workers above and below the line. As such, our settlement provides court-enforceable commitments for more films, an infusion of an additional $1.5 billion into home-grown film production, and protections for workers who are impacted by the merger. There’s no Hollywood without the people who work on and off screen to make the magic happen, and today’s settlement protects workers, jobs, and Hollywood.”

A judge still has to approve the consent decree. A five-state committee will monitor compliance.

David Ellison has said the companies now have “complete clearance” and hope to close in about two weeks, Variety reported. The combined company would bring together Paramount Pictures + Warner Bros. Pictures, Paramount+ + HBO Max, CBS + CNN, and a large slate of cable networks.

“This is an exciting moment for our company and our industry. If you’re like me, you’re in this business because you love the art of visual storytelling – the chance to entertain, unite and inspire the world through extraordinary stories,” added Ellison. “Together, Paramount and WBD can do more of that, for audiences everywhere. And we can’t wait to get started.”