States sued to block merger

Twelve states led by California sued in July to block Paramount's $111 billion merger with Warner Bros. Discovery, arguing it would reduce competition and violate antitrust laws. A judge initially ruled the merger would likely harm competition.

California settles with Paramount

California Attorney General Rob Bonta announced a settlement with Paramount this week, and the other states involved signed on. Judge Araceli Martínez-Olguín must now decide whether to approve it.

Advocacy groups oppose settlement

Free speech and media advocacy groups filed with the judge saying the settlement gives residents of the suing states "virtually nothing." The coalition includes the Committee for the First Amendment, Free Press, and the Freedom of the Press Foundation.

“"virtually nothing"”

Bonta previously criticized these remedies

The advocacy groups noted that Bonta had publicly criticized the very behavioral remedies now in the settlement, saying conditions like releasing 30 movies a year are "typically not enforceable" and "not particularly good at solving the problem."

“"typically not enforceable in the way that we like"”

Judge expresses skepticism

At a hearing, Judge Martínez-Olguín told lawyers the court is not a rubber stamp and she has questions. She wants to ensure the settlement was not the result of collusion and asked parties to address Senator Cory Booker's concerns about whether remedies match the alleged harms.

“"the court isn't a rubber stamp of your agreement… I have some questions"”

Film commitments are too weak

Advocacy groups say the 30-film commitment is lower than what the companies forecast to investors for 2027 as independent entities. Warner Bros. projected 19 films and Paramount forecast 15 or more, meaning the merger actually reduces output.

Independent film definition is loose

The settlement requires four independent films per year, but defines "independent film" as any movie based on an original screenplay, even if wholly financed, developed, and owned by the studio. This essentially allows the studio to count its own productions.

Small producers get nothing

Independent contractors and small business owners in film and documentary industries get no direct benefit from the settlement, even though they would gain from competitive markets. Only unions and attorneys general receive payments if Paramount misses film targets.

“"get nothing"”

Editorial independence board concerns

The settlement requires an Editorial Independence Board for CBS News and CNN, but members are chosen by Paramount and report to CEO David Ellison's board. Advocacy groups say this is constitutionally problematic and could place courts in the position of superintending newsroom content.

Cable pricing loophole remains

The settlement requires separate negotiations for basic cable channels for five years, but the combined company can still leverage its power in premium cable, streaming, and broadcast to extract higher prices. This carve-out undermines the pricing protection.

Writers Guild reluctantly settles

The Writers Guild settled its own lawsuit after learning of California's agreement, securing a five-year prohibition on writer layoffs in CBS News and $17.5 million for its health fund. But the guild said it still believes the merger will damage writers and the industry.

“"We continue to believe the merger will cause damage to writers and the industry at large"”

Other states abandoned the fight

Massachusetts, New York, Connecticut, and Minnesota initially opposed the California settlement but concluded the expense of continuing the legal battle was not justifiable without California leading the case. They signed on to the deal instead.

Bonta defends the settlement

Bonta said the deal guarantees massive domestic film investment and enforceable guardrails to keep cable prices competitive. He called it the best course of action while emphasizing it is not a vote of support for the merger itself.

“"is not a vote of support for this merger"”