Paramount, 12 States Settle Warner Bros. Antitrust Case

Paramount and 12 states have settled an antitrust lawsuit challenging Paramount’s planned acquisition of Warner Bros. Discovery, removing a major legal obstacle to the transaction. The agreement includes commitments on film production and cable pricing, along with a new board intended to protect editorial independence at CBS News and CNN. A federal judge must still approve the settlement before it can resolve the states’ case. The states, led by California Attorney General Rob Bonta, sued in July, arguing that combining the two entertainment companies could reduce competition. Bonta said the settlement addresses the states’ concerns through film-production investment and enforceable protections for cable prices. He also said the agreement should not be understood as state endorsement of the acquisition. Under terms described in reports, the combined company must establish a five-member News Editorial Independence Board for CBS News and CNN. The board is to set editorial principles and address disputes between newsroom employees and company management.