Paramount-Skydance settlement talks with state AGs near breakthrough as anti-merger activists mobilize

Paramount Skydance’s year-long effort to acquire Warner Bros. Discovery is now focused on sealing a settlement with the attorneys general of a twelve-state coalition that has sued to block the $110 billion merger on antitrust grounds. Sources indicate the talks are moving forward, a crucial development because the company must pay Warner Bros.

Discovery shareholders an extra $7 million each day after Oct. 1 if the transaction does not close. California Attorney General Rob Bonta has demanded structural remedies, though rumors suggest a compromise that keeps the studios separate for a period may be on the table. Meanwhile, anti-merger groups and actor Mark Ruffalo are rallying supporters in Oakland, Los Angeles and New York to urge Bonta not to “cave.”

The settlement discussions also touch on output guarantees, a pledge to produce at least 30 films annually, and commitments to retain operations in California. Paramount’s CEO David Ellison has reiterated his promise to preserve jobs by maintaining distinct studio identities. The outcome will determine whether the merger proceeds before a federal trial slated for March 2027.