# Paramount and WBD settle lawsuit, merger closing soon

> A settlement with state attorneys general clears the path for Paramount Skydance to merge with Warner Bros. Discovery within weeks.
- Title: Paramount and WBD settle lawsuit, merger closing soon · Adweek
- Summary: A settlement with state attorneys general clears the path for Paramount Skydance to merge with Warner Bros. Discovery within weeks. Paramount Skydance…
- Keywords: paramount, warner bros discovery, merger, david ellison, cnn, cbs news, california attorney general, antitrust, streaming, paramount+, hbo max, settlement
- Source: Adweek — https://adweek.com/convergent-tv/paramount-gets-big-win-for-wbd-merger-after-settlement-news
- Author: Mark Mwachiro
- Published: 2026-09-21T19:12:30+00:00
- Read time: 1 min
- Topics: paramount, warner bros discovery, merger, david ellison, cnn, cbs news, california attorney general, antitrust, streaming, paramount+, hbo max, settlement
## Settlement clears merger path
Paramount Skydance settled a lawsuit from 12 state attorneys general that had delayed its acquisition of Warner Bros. Discovery. The deal includes keeping CNN and CBS News editorially independent.
## Merger expected to close in two weeks
CEO David Ellison told staff the merger should close in about two weeks following the settlement announcement on Monday.
## States worried about news consolidation
California's attorney general Rob Bonta led opposition, arguing the merger would give Americans fewer sources for diverse information and opinions on major issues.

> fewer opportunities for Americans to hear the full breadth of information and opinions on a subject
## Streaming giants combine forces
Paramount+ has 82 million subscribers and HBO Max has over 140 million globally. The merged service will compete directly with Netflix and Disney+.
## Regulations on media ownership weakening
Analyst Ross Benes said the settlement shows that U.S. regulations governing mass media ownership have essentially ceased to exist, as corporate consolidation concerns were outweighed by political pressure.

> regulations governing mass media ownership have essentially ceased to exist in the U.S.
## Financial pressure drove quick deal
Paramount Skydance faced a March 2027 antitrust trial and a 650 million dollar quarterly penalty if the deal wasn't completed by September 30th, creating urgency to settle.
## Key takeaway

Paramount Skydance resolved a major legal obstacle to its WBD merger by agreeing to keep CNN and CBS News editorially independent and not sell cable networks, allowing the deal to close by late September.