$81 billion deal moves closer to completion after Paramount reaches agreements with U.S. states and Hollywood writers.

LOS ANGELES — September 22, 2026 — Paramount Skydance has reached settlements with California and 11 other U.S. states, removing a major legal obstacle to its planned acquisition of Warner Bros. Discovery.

The agreement concerns the proposed $81 billion merger, which would combine Paramount and Warner Bros. studios, major television networks including CBS and CNN, and streaming services Paramount+ and HBO Max. The transaction still requires final judicial approval.

Under the settlement, Paramount has agreed to increase U.S. film production by at least $300 million annually compared with 2025 levels, amounting to at least $1.5 billion over five years. The company will also be required to release at least 30 theatrical films annually during the first two years, followed by 32 films a year for the next three years.

The agreement also includes provisions covering cable distribution, studio facilities, workforce programs and news editorial independence at CBS and CNN. An independent board will oversee editorial independence, while additional monitoring mechanisms will track compliance with the settlement.

The Writers Guild of America has also settled its lawsuit challenging the merger. Paramount has said the transaction would generate significant savings, while opponents have raised concerns about media consolidation and potential effects on Hollywood jobs.

If completed, the transaction would significantly reshape the U.S. entertainment and streaming industry, bringing two major Hollywood studios and several large media businesses under one corporate structure.