Paramount Skydance, led by Larry Ellison, has reached a settlement with California and 11 other states, as well as a Hollywood writers union, regarding its proposed $110 billion merger with Warner Bros Discovery. The settlement, reported on September 21, 2026, includes provisions for independent editorial boards to oversee CNN and CBS to address concerns about political influence on coverage. The lawsuits were initiated by a coalition of 12 state attorneys general.
Seth Stern, director of advocacy at the Freedom of the Press Foundation, expressed skepticism about the effectiveness of the independent editorial boards, stating that they could create First Amendment issues if established as part of a government settlement. He raised concerns about the potential influence of Larry Ellison, a close ally of former President Donald Trump, on media coverage.
The settlement also stipulates a $30 million penalty if Paramount fails to produce 30 films annually as promised. This agreement follows months of legal and regulatory challenges regarding the merger, which would significantly consolidate power in the entertainment industry.
Paramount's concessions aim to ensure newsroom independence and maintain production levels, addressing some regulatory concerns. The merger would create one of the largest media and entertainment entities globally.
In addition to the state lawsuits, the Writers Guild of America had also filed a lawsuit to block the merger, which has since been settled. The terms of the settlement reportedly include protections for journalists at CBS and CNN, including headcount requirements.
The settlement allows Paramount to avoid a $7 million daily fee owed to Warner Bros shareholders for each day the merger is delayed past September 30. Following the announcement, Paramount Skydance's stock rose by 10 percent during midday trading before closing down 3 percent, while Warner Bros Discovery's stock increased by 11 percent.