Paramount on track to acquire Warner following a deal with US states
21.09.2026, DPA
The entertainment group Paramount has cleared a major hurdle in its takeover of Hollywood rival Warner Brothers.
Paramount reached an agreement on Monday with several US states that had sought to block the deal, worth more than $110 billion dollars, through legal action.
The agreement stipulates that the merged group will invest more money in the US and specifically in Hollywood, said California's Attorney General Rob Bonta.
A new editorial oversight board has been agreed for the news channel CNN and Paramount's broadcaster CBS News, designed to safeguard their independence.
Paramount's commitment that the studios will release a combined total of 30 films a year in cinemas, at least for the first two years following the merger, has been reaffirmed, according to Bonta.
The financial news service Bloomberg reported that the screenwriters' union is also dropping its lawsuit against the Warner takeover following an agreement with Paramount. Among other things, the studio has agreed to contribute $17.5 million to a healthcare fund for the writers.
The states led by California argued in their antitrust lawsuit that the concentration of economic power at Paramount would harm Hollywood and the cinema business.
US media reported that Paramount had threatened to begin the process of moving out of California from October onwards if no agreement is reached.
Paramount was taken over just over a year ago by the family of tech billionaire Larry Ellison.
The Warner group also owns the news channel CNN, whose fate has received particular attention in debates surrounding the takeover. CNN often reports critically on US President Donald Trump. Larry Ellison is known as a Trump supporter.
Paramount has reached a settlement with California and 11 other states that clears a major legal hurdle to its $110 billion takeover of Warner Bros. Discovery, with the deal imposing commitments on film production, jobs and editorial independence at CNN and CBS News.
Issued on: 22/09/2026 -
By: FRANCE 24
Video by: Wassim CORNET
01:24
Paramount has reached a settlement with a group of US states that clears the way for its takeover of Warner Bros. Discovery, officials announced Monday, creating a Hollywood empire spanning television, news and cinema.
Paramount, which is run by David Ellison, whose ultra-wealthy family has ties to US President Donald Trump, won a bidding war against Netflix in February for control of a stable of assets that includes Warner Bros. Pictures, CNN and the HBO Max streaming service.
The Trump administration approved the deal, one of the largest media mergers in years, in June without demanding a change to its business, before 12 US states sued to block the transaction.
Financing for the deal reportedly includes about $24 billion in equity from the sovereign wealth funds of Saudi Arabia, Qatar and Abu Dhabi. David Ellison's father, billionaire Oracle founder Larry Ellison, also provided funding and a guarantee.
Opponents in the movie industry said the combined company would slash jobs in a Hollywood already under pressure and reduce the number of films produced every year, while news media groups feared CNN's independence could be compromised.
The deal includes several safeguards on these issues, including a board meant to protect CNN's editorial independence.
The news comes just days after Trump banned CNN, Politico and MS NOW from the White House. The outlets are suing the administration to have the decision reversed.
Paramount had threatened to move out of California if the state's attorney general, Rob Bonta, did not negotiate an end to the lawsuit.
In their complaint, the 12 states argued the combined company would control roughly 27 percent of wide-release theatrical film distribution and a similar percentage of the basic cable channel industry.
California led the suit, joined by Arizona, Colorado, Connecticut, Massachusetts, Minnesota, Nevada, New Jersey, New Mexico, New York, Oregon and Washington, all Democratic-led.
'Facts of the law'
Four states -- Massachusetts, New York, Connecticut and Minnesota -- had held out but concluded that fighting on without California was not worth the expense, Bloomberg reported.
Bonta told reporters that protecting jobs was a major concern in his handling of the case and acknowledged that many people may be disappointed with his decision to strike a deal.
"My job as attorney general is to look at the facts and look at the law, weigh the options in front of us, and make the best decisions for the people of California," he said.
Bonta said the settlement includes a commitment that the merged studio would produce 30 movies in each of the first two years of the deal, and 32 movies in each of the following three years.
At least four of those films must be independent productions, and at least 20 percent must be blockbusters, Bonta said.
The terms include a financial penalty if Paramount fails to meet the targets.
According to a joint court filing, the deal also requires at least $300 million more in annual spending on US film production by Paramount and Warner Bros. than in 2025.
The companies must also keep both studios' production lots, honor labor agreements and commit funds to workforce training, the filing said.
It also creates a News Editorial Independence Board to set editorial principles for the combined company's news channels, including CNN.
Compliance would be overseen by an internal monitor, an independent trustee and a committee of five states, with the court retaining jurisdiction over enforcement.
(FRANCE 24 with AFP)
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