Paramount settles lawsuits with 12 US states, clearing way for Warner merger

States including California and New York sued over concerns of ‘extinguishing competition’ with $81bn merger

Paramount has reached a settlement with California and several other states that sued over a proposed $81bn merger with Warner Bros Discovery (WBD), the California attorney general announced Monday, clearing the way to consolidate some of Hollywood’s most recognizable TV networks and studios under one owner.

Though the merger was approved by the justice department in June, a coalition of 12 states, led by California, had sued over concerns that combining two of the five last legacy studios in Hollywood would “extinguish competition” and lead to fewer movies in theaters and on streaming platforms.

Rob Bonta, the California attorney general who spearheaded the antitrust litigation, said in a news conference on Monday that Paramount had made an “enforceable commitment to significantly increase” production in the US and specifically in Los Angeles, which he said would mean “more jobs, more economic activity”.

“This settlement is not a vote of support for this merger; it’s not a blessing of the broader merger,” he said. “Broadly speaking, we believe further consolidation in markets that are essential to American economic life doesn’t serve the American economy, consumers or competition well.”