States Settle Antitrust Lawsuit with Paramount, Clearing Path for Warner Bros. Discovery Merger

Twelve states, led by California and New Jersey, reached a settlement with Paramount Skydance Corporation on September 21, 2026, resolving an antitrust lawsuit concerning its $81 billion merger with Warner Bros. Discovery. The agreement, announced on September 30, 2026, includes commitments to increase domestic film production by at least $1.5 billion over five years, establish a $47.5 million fund for displaced workers, and ensure editorial independence for news operations. This settlement removes a significant hurdle for the merger, which will combine two major studios and their extensive content libraries.