Paramount Seeks Settlement in Warner Bros. Merger Fight

Paramount Skydance is seeking a settlement with 12 states that are challenging its planned acquisition of Warner Bros. Discovery, arguing that resolving the dispute would be preferable to continuing the legal battle. The company made the appeal in a Friday statement after its proposed merger received regulatory approval in 68 countries.

Paramount said reaching an agreement with the states would be a “better path” than prolonged litigation and argued that a settlement could protect the interests of workers and consumers in the affected states. The company also accused the state attorneys general pursuing the case of causing harm to their own constituents without providing a corresponding benefit.

The lawsuit, led by California Attorney General Rob Bonta, remains the biggest obstacle to Paramount’s proposed acquisition of Warner Bros. Discovery. The legal challenge prompted Paramount last month to postpone completion of the transaction until 2027, a delay that could ultimately cost the company hundreds of millions of dollars or potentially billions.

“While we remain confident that the law and the facts are on our side, we have offered commitments and concessions and remain open to working constructively with the State AGs to find a path forward in the interest of our employees and the creative community in California and across the world – just as we have with the regulators in 68 countries worldwide,” Paramount CEO David Ellison said in the statement.

The $110 billion transaction was announced in February, after Paramount outbid Netflix in the competition to acquire Warner Bros. Under the terms of the agreement, Paramount must pay Warner Bros. shareholders a $0.25-per-share-per-day “ticking fee” for every day the deal remains unfinished after Sept. 30. If the transaction is delayed until June 2027, the accumulated cost could exceed $1.9 billion.

The coalition of 12 states has alleged that the proposed merger violates antitrust laws and would reduce competition, potentially contributing to higher prices for consumers, including cable bills and movie tickets. A federal judge temporarily blocked the merger in June, leaving the state-led legal challenge as a critical barrier to completing the deal.