- Paramount reached an agreement with 12 state attorneys general over its Warner Bros. Discovery deal
- The agreement removes a major hurdle to the proposed $111 billion merger in Hollywood
- The merger was delayed due to an antitrust lawsuit led by California's Attorney General Rob Bonta
Paramount has reached an agreement with 12 state attorneys general, removing a major hurdle to its proposed acquisition of Warner Bros. Discovery, The Variety reported, citing sources.
The agreement comes just days before Paramount was due to start paying a $7 million daily “ticking fee” from October 1. Bloomberg was the first to report the development, followed by The Wall Street Journal.
The proposed $111 billion merger, the largest in Hollywood history, had been put on hold because of an antitrust lawsuit filed by the states. The trial in the case was scheduled to begin on March 2, 2027.
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Antitrust Case Was Holding Up The Deal
California Attorney General Rob Bonta led the 12-state coalition that sued to block the merger, despite the deal having received prior approval from the US Department of Justice.
Judge Araceli Martinez-Olguin later granted a restraining order, saying the states had presented a strong case that the merger could hurt competition in the basic cable and theatrical markets.
Paramount subsequently agreed to pause the transaction until a trial on the merits rather than fight a motion for a preliminary injunction.
The states had argued that the merger could result in higher prices and fewer options for theatres, cable and satellite providers. They said those higher costs could eventually be passed on to consumers.
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