Judge clears path for Paramount–Warner deal

U.S. District Judge Araceli Martínez-Olguín on Sept. 30, 2026 approved a consent-decree settlement resolving an antitrust lawsuit brought by state attorneys general over Paramount Skydance’s planned acquisition of Warner Bros. Discovery. The order dissolves an injunction that had prevented the companies from closing their transaction, allowing the settlement to take effect.

With the court’s approval, the combined company can move toward completing the deal once remaining contractual and financing conditions are satisfied. The transaction’s value has been reported at roughly $110 billion on an enterprise basis, with an equity value of about $81 billion.

A central feature of the settlement is a five-year commitment to minimum film output by the combined Paramount–Warner entity. The company must release at least 30 films per year during each of the first two years of the agreement, and 32 films per year in each of years three through five.

The settlement also imposes geographic production requirements. The company must produce at least 20% of its films in the United States for the first two years of the agreement, rising to 30% for the following three years. Additional quotas apply to higher-budget “tentpole” projects and “independent” films.

To enforce these obligations, the decree includes financial penalties and structural remedies. The company faces a $30 million fine for each film below the required annual total, and persistent failure to meet the targets could trigger potential divestiture of film studio Miramax.

Beyond output quotas, the settlement mandates higher U.S. production spending. The combined company is required to increase its U.S. film production investment by at least $1.5 billion over five years, or about $300 million per year.

The agreement also addresses workforce impacts from the merger. It establishes a $47.5 million fund over the same five-year period to support workers displaced as a result of the transaction.

To respond to competition concerns in television distribution, the settlement requires Paramount and Warner Bros. to negotiate the carriage of their channels in cable packages separately, rather than bundling all networks together in a single negotiation.

In the news sector, the consent decree creates a News Editorial Independence Board for CNN and CBS News. This five-member body, composed of active or retired journalists appointed by the combined company’s board, is tasked with helping establish editorial standards and reviewing complaints about interference with editorial independence.

The board will report to the company and is designed to provide an extra layer of oversight for the two major news organizations under common ownership. Its creation is one of several behavioral remedies in the settlement intended to address concerns raised during the antitrust review.

With the settlement approved and injunction lifted, the Paramount Skydance–Warner Bros. Discovery merger can proceed toward closing, subject to remaining non-legal conditions. Company timelines point to an early-October completion once those requirements are met.