Paramount to resolve lawsuit, clearing the way for Warner Bros. deal

Paramount reached an agreement Monday to resolve an antitrust lawsuit delaying its $111 billion acquisition of Warner Bros. Discovery, according to four people familiar with the negotiations, eliminating the last significant barrier to the creation of an entertainment and media colossus.

A group of states, led by California Attorney General Rob Bonta, a Democrat, sued Paramount in July, arguing that an acquisition of Warner Bros. Discovery would concentrate too much power over cable TV and blockbuster films under one company.

After weeks of on-again-off-again negotiations, Paramount and the states agreed to a number of concessions to complete the deal, according to the people, who spoke on condition of anonymity to discuss details not yet made public. The entertainment giant has agreed to establish a board of journalists to ensure the editorial independence of CNN and CBS News and committed to distributing 30 movies in theaters every year. The company also pledged to spend an additional $1.5 billion on film production over the next five years.

A completion of the blockbuster deal would create one of the largest entertainment companies in the world. It would pair Paramount’s movie studio with Warner Bros., which has made films like “Superman,” “A Minecraft Movie” and “Sinners.” The combined company would also own two major streaming services, Paramount+ and HBO Max, and control both CNN and CBS News.

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The deal would make David Ellison, Paramount’s CEO, one of the most powerful people in the entertainment industry, backed by the fortune of his father, billionaire Oracle co-founder Larry Ellison. The Ellison family’s ties to President Donald Trump — which included a dinner David Ellison hosted this spring “honoring the Trump White House” — have made Democrats and many journalists at CNN wary of the deal.

Paramount and Bonta did not immediately respond to requests for comment.