In the US, Paramount settles states' lawsuit over Warner Bros — France 24
In the United States, Paramount has reached a settlement with California and 11 other states, removing a major legal obstacle to the acquisition of Warner Bros. Discovery. The states filed a lawsuit against the deal after the administration of US President Donald Trump approved it in June without requiring changes to the company’s business.
According to France 24, Paramount beat Netflix in February in the battle for control of Warner Bros. Discovery assets, which include Warner Bros. Pictures, CNN, and the HBO Max streaming service. The deal is valued at $110 billion.
Film production commitments
California Attorney General Rob Bonta said that the merged studio committed to releasing 30 films in each of the first two years after the deal is concluded and 32 films during each of the following three years. At least four films must be independent productions, and no less than 20% must be blockbusters.
If Paramount fails to meet these targets, the agreement provides for financial penalties. According to a joint court filing, Paramount and Warner Bros. must also spend at least $300 million more annually on film production in the United States than they did in 2025.
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Jobs and CNN’s independence
The settlement terms provide for preserving the production facilities of both studios, fulfilling labor agreements, and funding professional training for employees. Film industry representatives feared that the merger would lead to job cuts and a reduction in the number of films, while media organizations voiced concerns about CNN’s editorial independence.
The parties will also establish a News Editorial Independence Council that will define editorial principles for the news channels of the merged company, including CNN. Compliance with the terms will be monitored by an internal monitor, an independent trustee, a committee of five states, and the court.
California led the lawsuit, joined by Arizona, Colorado, Connecticut, Massachusetts, Minnesota, Nevada, New Jersey, New Mexico, New York, Oregon, and Washington. The states argued that the merged company would control approximately 27% of wide theatrical-release film distribution and a comparable share of the basic cable channel industry.
