by Mia Maldonado, Washington State Standard
September 21, 2026
Paramount and Warner Bros. Discovery may move forward with a merger under the conditions that they boost film production, support displaced workers and preserve competition among cable channels over the next five years, 12 Democratic-led states and the attorneys representing the companies agreed in a court settlement Monday.
After the two leading film companies sought a $110 billion merger this summer, California Attorney General Rob Bonta and 11 other attorneys generals filed a lawsuit in the U.S. District for the Northern District of California arguing the merger eliminates competition within the film industry and violates federal antitrust laws.
If approved by a judge, the settlement would allow the merger to move forward under the conditions that over the next five years the merged company spends at least $1.5 billion to boost U.S. film production and commits $47.5 million to a training and development fund for workers affected by the merger.
The deal also requires Paramount to negotiate its basic cable channels separately from Warner Bros.’ basic cable channels to preserve competition between them and keep prices down for consumers. The company must also establish a News Editorial Independence Board to help protect editorial independence at CNN and CBS.
The settlement requires the merged company to commit to releasing 30 films per year in theaters for the first two years of the combined company and 32 films per year for the three years after that. Additionally, the company must release at least four independent films each year throughout the five years of the settlement.
“We stepped up to challenge this merger to limit rising costs for working families, to preserve competition, and to protect Oregon’s film production industry,” said Oregon Attorney General Rayfield. “Today’s agreement keeps real competition in place, ensures that productions will continue and ensures journalistic independence. That’s a win for Oregon workers and consumers.”
Oregon, 11 other states sue to block Paramount-Warner Bros. merger
If the company fails to meet the film output requirements, it must divest from Miramax Studios and pay $30 million per missed film toward healthcare and retirement benefits for the Writers Guild of America, the International Alliance of Theatrical State Employees, the Directors Guild of America, International Brotherhood of Teamsters and other unions.
“This settlement is not a vote of support for this merger,” Bonta said in a statement. “But we believe this settlement, which resolves our antitrust concerns in every market alleged in our case, protects competition and consumer choice, and puts workers’ needs, concerns and futures first, is the best course of action.”
Bonta filed the lawsuit alongside the Democratic attorneys general of Oregon, Arizona, Colorado, Connecticut, Massachusetts, Minnesota, Nevada, New Jersey, New Mexico, New York and Washington.
This story was originally produced by Oregon Capital Chronicle, which is part of States Newsroom, a nonprofit news network which includes Washington State Standard, and is supported by grants and a coalition of donors as a 501c(3) public charity.
Washington AG celebrates ruling
From Washington State Standard
Washington Attorney General Nick Brown sees the protections included in the settlement as “significant and robust.” He believes they’ll ensure high-quality films will continue to be released widely in theaters.
“While federal regulators ignored the clear impacts to consumers and labor posed by this mega-merger, states came together and secured significant concessions from this media behemoth,” Brown, a Democrat, said in a statement. “No company has free license to burden the public with anticompetitive practices and we will continue to hold them accountable.”
Washington State Standard is part of States Newsroom, a nonprofit news network supported by grants and a coalition of donors as a 501c(3) public charity. Washington State Standard maintains editorial independence. Contact Editor for questions: [email protected].