Paramount reaches agreement with several states regarding mega-merger with Warner Bros.
Paramount, led by David Ellison—whose ultra-wealthy family has ties to U.S. President Donald Trump—won a bidding war with Netflix in February for control of a number of assets, including Warner Bros. Pictures, CNN and streaming service HBO Max.
The Paramount Pictures logo.
Paramount reached an agreement with a group of Americans who were seeking to block the merger with Warner Bros. Discovery, U.S. media reported on Monday.
The merger would create a Hollywood empire spanning television, media and film.
Paramount, led by David Ellison—whose billionaire family has ties to U.S. President Donald Trump—won a bidding war with Netflix in February for control of a number of assets, including Warner Bros. Pictures, CNN and streaming service HBO Max.
The administration approved the deal in June without demanding changes to the business model. However, 12 states filed a lawsuit to block the transaction.
California led the effort, which was joined by Arizona, Colorado, Connecticut, Massachusetts, Minnesota, Nevada, New Jersey, New Mexico, New York, Oregon and Washington, all of which are governed by Democrats.
In their complaint, they argued that the merged company would control about 27% of the distribution of films released in theaters and a similar percentage of licensing for cable television channels.
Paramount threatened to move out of California if state Attorney General Rob Bonta did not negotiate a settlement to end the lawsuit.
State attorneys worked through the night on the agreement, Bloomberg reported, citing a person familiar with the matter.
Four states resisted settlement
Paramount and the attorneys general' offices in California and New York did not immediately respond to requests for comment.
A formal announcement of the deal is expected on Monday.
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