Sept 21 (Reuters) – Paramount Skydance has reached a settlement with California and other states suing to block its $110 billion merger with Warner Bros Discovery, Bloomberg News reported on Monday, citing a person familiar with the matter.
Settlement talks came to fruition over the weekend after four states that had opposed terms of a deal outlined with California conceded, the report said. The settlement is expected to be announced later today, Bloomberg added.
Paramount Skydance and Warner Bros Discovery did not immediately respond to Reuters requests for comment.
The settlement would remove a major obstacle to closing one of the largest media mergers in history, letting Paramount move forward with a combination that will unite two of Hollywood’s biggest film studios, two major streaming services and two of the largest cable-news operations under a single owner.
Shares of Warner Bros Discovery rose further after the Bloomberg report and were last up nearly 10%. Paramount pared some gains, and was last trading about 7% higher.
The Wall Street Journal reported on Sunday that Paramount and California’s attorney general had discussed a range of concessions, including a $1.5 billion investment in production in the state, a commitment not to sell either studio lot, and potential penalties if Paramount fails to honor a pledge to produce 30 movies a year after the merger.
Other measures under consideration include selling some cable channels and creating a board to help ensure CNN retains editorial independence, WSJ had reported.
Bloomberg reported on Monday that the states succeeded in securing independent editorial boards for CBS and CNN as part of the settlement with Paramount.
A coalition of 12 state attorneys general, led by California’s Rob Bonta, sued in July to block the merger, arguing it would reduce competition in theatrical film distribution and the licensing of basic cable channels.
A settlement will help Paramount avoid a $7 million daily fee it owes Warner Bros shareholders for each day the deal does not close past September 30.
Antitrust regulators in other jurisdictions globally, including the European Union and Britain, have already cleared the acquisition.
(Reporting by Anhata Rooprai in Bengaluru; Editing by Devika Syamnath)
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