Paramount settles lawsuit blocking $110 billion Warner Bros. merger

Paramount reached a settlement with California and 11 other states that had sued to block its planned $110 billion acquisition of Warner Bros. Discovery. The proposed consent decree requires minimum annual theatrical releases and at least $300 million in additional U.S. production spending versus 2025 levels.

The deal shows regulators are pushing media megamergers to preserve theatrical output and domestic production rather than relying only on divestitures or outright blocks. If approved, the settlement could become a template for future media consolidation remedies as studios seek scale against streaming and tech rivals.