# States settle Paramount-Warner lawsuit

> States and Paramount agree to end lawsuit, clearing $81 billion merger hurdle.
- Title: States settle Paramount-Warner lawsuit · ABC7 New York
- Summary: States and Paramount agree to end lawsuit, clearing $81 billion merger hurdle. Twelve states and WGA settle with Paramount over merger, avoiding antitrust…
- Keywords: paramount, warner bros discovery, california attorney general, wga, merger, antitrust, u.s. states, news, local, States, settle, Paramount-Warner
- Source: ABC7 New York — https://abc7ny.com/story/states-settle-lawsuit-paramount-warner-merger-clearing-key-hurdle-81-billion-deal/19855299
- Published: 2026-09-21T18:21:19+00:00
- Read time: 1 min
- Topics: paramount, warner bros discovery, california attorney general, wga, merger, antitrust, u.s. states, news, local
## States and Paramount settle
Twelve states and Hollywood writers agreed to settle lawsuits challenging Paramount's acquisition of Warner Bros. Discovery.

> The blockbuster deal will still bring together two of Hollywood’s oldest studios, key TV networks like CBS and CNN and streaming platforms HBO Max and Paramount+.
## Merger deal cleared
The $81 billion merger clears a key hurdle for joining Paramount and Warner Bros. Discovery.
## California AG's pledge
California Attorney General Rob Bonta pledged to increase U.S. film production and support displaced workers.

> We continue to believe the merger will cause damage to writers and the industry at large.
## Paramount's response
Paramount CEO David Ellison called the settlement 'complete clearance' for the merger.

> Bringing Paramount and Warner Bros. Discovery together will build that stronger Hollywood.
## WGA settlement terms
WGA agreed to $17.5 million for health fund and writer layoffs prohibited at CBS News for five years.
## Critics warn
Critics warned of job losses and higher prices after the merger, citing industry consolidation.

> Today, billionaires have yet again bribed, censored, and bullied their way to the top.
## Key takeaway

Twelve states and WGA settle with Paramount over merger, avoiding antitrust trial but not approving the deal.