California reaches settlement allowing Paramount to merge with Warner Bros.

<p>California and Paramount Skydance have reached a settlement that permits the company to proceed with its $111 billion merger with Warner Bros. Discovery. This settlement is expected to be announced later today and has faced criticism from some Democrats and media advocates.</p><p>Lina Khan, former chair of the Federal Trade Commission during the Biden administration, stated yesterday, "The Paramount/Warner Brothers merger seems facially illegal, and the state AG lawsuit challenging it is very strong. It’s troubling to hear that the states may now settle for behavioral remedies, allowing the deal to go through subject to various promises from the firms. Behavioral remedies routinely fail, and the stakes here are particularly high given that a strong democracy requires open markets for sound journalism and creative expression."</p><p>Following reports of advanced settlement discussions over the weekend, Bloomberg reported today that Paramount has reached an agreement with California and other states that had filed lawsuits to block the merger. According to Bloomberg, the settlement talks advanced after four states that opposed the terms conceded.</p>