Paramount offers $1.5B California pledge in bid to save Warner Bros. merger: report
Por Abu Sultan — – World RSS Feed
Paramount offers $1.5B California pledge in bid to save Warner Bros. merger: report
Paramount and California’s attorney general have discussed a range of concessions in advanced settlement negotiations
Abu Sultan Monday 21 September 2026 08:52 BST
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Paramount and California’s attorney general have engaged in advanced discussions over potential concessions to settle a major antitrust challenge, according to a Wall Street Journal report on Sunday citing sources familiar with the matter.
The proposed terms reportedly include a $1.5 billion commitment to film and television production within the state.
The lawsuit, brought by California alongside 11 other states, remains a key remaining obstacle to Paramount’s planned $110 billion acquisition of Warner Bros. Discovery.
open image in galleryState regulators moved to block the transaction in July, arguing that merging the two companies would create a dominant media entity with the power to inflate prices across film and television markets.
Alongside the production investment, negotiators have discussed commitments requiring Paramount to retain its studio lots and maintain its primary operations within California, according to the report.
Enforcement mechanisms are also under consideration if Paramount fails to fulfill a previous pledge to produce 30 theatrical films per year following the merger. Penalties could require the company to divest its stake in Miramax, the studio behind acclaimed releases such as “No Country for Old Men” and “Pulp Fiction.”
Further provisions being weighed include divesting certain cable television channels and creating an oversight board designed to protect CNN’s editorial independence.
open image in galleryIn response to inquiries, a spokesperson for the California AG said in a statement to Reuters: “Potential settlement talks are confidential.
We cannot confirm or deny whether settlement talks are occurring or their alleged substance.” Representatives for Paramount Skydance did not immediately respond to requests for comment submitted outside standard business hours.
A settlement between Paramount and the states could be finalized as early as this weekend, with terms expected to address theatrical release guarantees and independent monitoring of CNN, Reuters reported last week.
The deal is a cornerstone of Paramount CEO David Ellison’s strategy, who sees the consolidation of two iconic Hollywood studios and their combined television assets as crucial to the company’s future growth.
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