Paramount Settles with 12 States, Clearing Path for $110 Billion Warner Bros Discovery Merger

Paramount Skydance has reached a settlement with California and 11 other states that had sued to block its $110 billion acquisition of Warner Bros Discovery, California Attorney General Rob Bonta announced on Monday, removing one of the last major regulatory hurdles to what would be one of the largest media mergers in history.

The settlement terms, reported by the Wall Street Journal, include a $1.5 billion investment in California production, a commitment not to sell either studio lot, the divestiture of some cable channels, and the creation of an independent board to protect CNN's editorial independence. The concessions were hammered out over the weekend before the formal announcement Monday afternoon.

Shares of both companies surged on the news. Warner Bros Discovery stock jumped as much as 9.8%, nearing its 52-week high at around $30.50, while Paramount Skydance shares climbed more than 8% to roughly $10.965. The moves came as broader markets were also higher, with the Nasdaq gaining 1.25% on the day.