Paramount makes concessions to salvage $111 billion Warner Bros. Discovery deal

David Ellison, Chairman & CEO, Paramount Skydance speaks on stage during New York Upfront Partnership Event 2026 at Storied NYC on April 22, 2026 in New York City. Noam Galai/Getty Images for Paramount/Getty Images North America hide caption

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Paramount's owners have made a series of concessions to a coalition of 12 Democratic state attorneys general to resolve a lawsuit that endangered the media company's $111 billion takeover bid of its larger Hollywood rival, Warner Bros. Discovery.

"The settlement is not a vote of support for this merger," said California Attorney General Rob Bonta, adding he didn't think the two companies should merge. But, he said, the settlement is a "strong solution that protects competition and consumers."

The agreement will bind Paramount to operate Warner Bros. Studios and Paramount Pictures separately — at least for now. Together, they will release at least 30 films a year for two years, and 32 movies a year for the next three, or risk a financial penalty. It will also spend $300 million more annually to make movies in the U.S.

"More production means more work here at home," Bonta said in announcing the settlement.

And the deal will also create a board intended to insulate the combined company's tv news giants, CBS and CNN, from corporate intervention in newsroom decisions, a demand from several of the attorneys general.

A trustee will monitor Paramount's compliance with the terms, Bonta said. If the company fails, he said the states intend to take it to court.