NEW YORK — Paramount is advancing toward a potential settlement with California and 11 other U.S. states challenging its massive $110 billion acquisition of Warner Bros. Discovery, with an agreement possible as early as this weekend.
Sources familiar with the matter revealed that ongoing negotiations involve key structural provisions, including independent content monitoring for CNN and explicit commitments regarding future theatrical movie releases. The legal challenge, spearheaded by state attorneys general, has served as one of the final major roadblocks preventing the multi-billion-dollar merger from closing, despite prior clearance from federal regulators.
Market reaction to the news was swift, with Paramount shares jumping nearly 7% following the market close, while Warner Bros. Discovery shares rallied 8.4% in after-hours trading.
A swift resolution is financially pressing for Paramount, which faces a $7 million-a-day "ticking fee" payable to Warner Bros. shareholders for every day past September 30 that the transaction remains incomplete. While representatives for the California Department of Justice declined to formally confirm the ongoing confidential talks, a successful weekend pact would clear a major antitrust hurdle for the consolidation. However, the company still faces separate legal hurdles, including an ongoing lawsuit from the Writers Guild of America.
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