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Paramount Skydance (PSKY) has agreed to settle a multistate antitrust lawsuit involving its proposed

Paramount's agreement with 12 state attorneys general paves the way for the company to complete its $110 billion acquisition of Warner Bros. Discovery.

Sept 21 (Reuters) - Paramount Skydance has settled with California and 11 other states that sued to block its $110 billion acquisition of Warner Bros Discovery, a ‌source familiar with the matter said on Monday, clearing one of the last ‌hurdles to a deal that would reshape Hollywood. The settlement includes the creation of independent editorial boards for CNN and CBS, ​the source said, a move aimed at safeguarding the independence of their news operations under the combined company.

Paramount won’t have to sell cable channels under the $81 billion merger poised to reshape Hollywood.

Antitrust settlement talks are reshuffling the media landscape in real time, sending two rival stocks surging for completely opposite reasons while their biggest streaming competitor barely flinches.

Both stocks jumped about 7% Monday morning after reports that Paramount Skydance and the California attorney general met to discuss a settlement.

David Ellison is dangling CNN to appease critics of his massive Warner Bros. Discovery deal, but the attorneys general suing to block it say the offer solves nothing. A September deadline and a seven-figure daily fee are forcing a decision that no single concession can fix.

Makan Delrahim made the disclosure at Politico’s California Agenda conference, according to Reuters, signaling that Paramount is willing to go beyond internal safeguards to salvage a deal that has become one of the most politically charged media mergers in years. Warner Bros. Discovery is the publicly traded parent of CNN (NASDAQ: WBD), and the merger’s fate directly determines whether Ellison’s Paramount consolidates control over both CBS News and the cable network.

The California governor has told people involved in the suit that blocking the $81 billion deal could harm Hollywood jobs.

The primary reason for the 12-state lawsuit is that a Paramount-WBD combination would curb entertainment content and distribution, putting the TV/movie marketplace into fewer hands. What's the fallout?

This deal could seriously harm movie theatres.

The Paramount Skydance deal faces more regulatory attention.

Paramount Skydance (PSKY) has reportedly offered concessions to address European Union competition c

The CMA has set Aug. 7, 2026, as the deadline for its initial review of the deal, when it will decide whether the proposed merger of PSKY and WBD raises competition concerns.

Shareholder approval moved the deal forward, but antitrust scrutiny now puts the focus on whether regulators seek divestitures or conditions that could affect the timing and economics of the transaction.