States settle lawsuit over Paramount-Warner merger, clearing key hurdle for $81 billion deal

A lawsuit challenging the proposed $81 billion merger between Paramount and Warner Bros. Discovery has been settled with several states, removing a significant obstacle to the deal. The Writers Guild of America (WGA) expressed continued concerns that the merger would harm writers and the industry, despite New York Attorney General Letitia James securing a $17.5 million commitment from Paramount for the Writers Guild health care fund. The settlement with 12 state attorneys general and the WGA was reached on September 21, 2026.