Paramount has reached a settlement with a 12-state coalition led by California Attorney General Rob Bonta, clearing a major hurdle in completing the largest $111 billion merger with Warner Bros. Discovery in Hollywood history. The agreement comes ahead of a $7 million daily penalty assessment scheduled to begin on Oct. 1.
The two sides held tense talks over the weekend, focusing on guarantees to maintain production and jobs in California, as well as editorial controls at CBS News and CNN. The settlement does not require Paramount to make major structural divestments, sources said. The deal paves the way for the merger to be completed, with the Writers Guild of America also planning to join, despite criticism from non-governmental groups such as the American Economic Freedom Project that the government has bowed to corporate pressure.
