Paramount settles lawsuit with US states, helping clear way for $110bn merger with Warner Bros

Paramount settles lawsuit with US states, helping clear way for $110bn merger with Warner Bros

A coalition of states led by California had challenged the deal, citing concerns about competition in film and television.

Paramount Skydance has reached a settlement with dozens of US states, removing a significant obstacle to its $110bn (£82.8bn) merger with Warner Bros Discovery.

California Attorney General Rob Bonta said at a news conference that state officials agreed to the terms after obtaining commitments aimed at protecting competition across film and television, and broadcasting.

Even so, Bonta said, "the settlement is not a vote of support for this merger." "It is not a blessing of the broader merger."

David Ellison, the company's chief, has threatened to shift studio operations out of California.

Bonta said the settlement will help increase film production in the US.

Under the agreement, Paramount must release at least 30 films each year, he added.

In a statement, David Ellison, Paramount's CEO, welcomed the settlement, saying: "Our shared aim was an outcome that best serves consumers, workers and - most importantly -the creative community so vital to the art of visual storytelling."

"Having now addressed the State AGs' and WGA's concerns, we have complete clearance for this merger and look forward to putting these commitments into action," he said, referring to the union, Writers Guild of America.