State attorneys general have reached a settlement regarding Paramount’s acquisition of Warner Bros. Discovery, CNN’s parent company, allowing the merger to proceed. California Attorney General Rob Bonta, who led the coalition of 12 states that sued to block the merger, announced the settlement during a press conference in Los Angeles on Monday. Warner Bros. Discovery CEO David Zaslav indicated that the merger is expected to close no later than early October. The merger will combine Paramount’s film and television studios, CBS, and the Paramount+ streaming service with Warner’s studios, including HBO and CNN.
In exchange for the states dropping their antitrust lawsuit, Bonta stated that Paramount will make several commitments, including releasing 30 films per year in theaters and establishing a news editorial independence board to support the editorial independence of CBS News and CNN. This board must be formed within 180 days of the merger's closing and will consist of five established journalists, each with a minimum of 10 years of experience. The board will address disputes regarding alleged reporting bias and ensure editorial independence from ownership and shareholders.
The settlement allows Paramount CEO David Ellison and his father, Larry Ellison, to expand their media holdings significantly. David Ellison expressed gratitude to Bonta and the other attorneys general for their efforts in reaching a resolution. The merger has faced political scrutiny, particularly due to Larry Ellison's ties to former President Donald Trump and the involvement of Middle Eastern sovereign wealth funds in financing the deal.
Bonta and the other state attorneys general had previously secured a favorable ruling from a California judge, who indicated that the merger might violate antitrust laws. A trial was set for early March, but Paramount sought a settlement ahead of an impending deadline that would increase the acquisition's cost. Some state attorneys general expressed disappointment with the settlement, as they sought stronger concessions, including the divestiture of CNN and CBS News. However, Connecticut AG William Tong acknowledged the establishment of the editorial board as a meaningful step toward protecting editorial independence.
Additionally, the Writers Guild of America settled its lawsuit against the merger, with Paramount agreeing to prohibit layoffs of writers at CBS News for five years and to contribute $17.5 million to the union's health fund and cover legal fees related to the litigation.