Paramount Skydance has settled a lawsuit with dozens of US states, removing a major hurdle to its $110bn (£82.8bn) merger with Warner Bros Discovery.
California Attorney General Rob Bonta told a news conference that state officials agreed to terms after securing commitments to protect competition across film and television, and broadcasting.
Still, “the settlement is not a vote of support for this merger,” Bonta said. “I don’t think these two companies should merge.”
Paramount chief executive David Ellison hailed the resolution, 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.”
In a statement, Ellison said that now the state attorneys general and the Writers Guild of America concerns had been addressed, “we have complete clearance for this merger and look forward to putting these commitments into action”.
Ellison had previously threatened to move studio operations out of California.
The settlement will help boost film production in the US, Bonta said, adding that under the agreement, Paramount must release at least 30 films each year.
Bonta stressed the agreement guarantees a massive boost to domestic output, “$300m to $1.5bn more, at minimum, for film and TV production right here in our country”.
“Importantly, that is the baseline. That is the minimum,” Bonta said, noting that production commitments could surge by up to 700% if Congress passes a federal film tax credit.
Under the deal’s initial terms, Paramount must ensure 20% of all film production takes place in the US for the first two years, rising over 30% over the following three years.
While mergers typically lead to corporate overlap and redundancies, Bonta maintained that it would be a “job creator” that will put people back to work across the industry.
