Paramount may reach an agreement as early as this weekend with the U.S. states seeking to block its $110 billion acquisition of Warner Bros. Discovery. Possible settlement terms include independent monitoring of CNN content and commitments regarding the number of films released in theaters, Reuters reports, citing sources, according to UNN.
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After information emerged about a possible agreement, Paramount shares rose by nearly 7% in over-the-counter trading, while Warner Bros. Discovery shares rose 8.4%.
California and 11 other states filed a lawsuit against the deal in July. They claim the merger would create a media giant capable of raising prices for films and television content. Federal regulators in U.S. President Donald Trump's administration previously approved the deal.
CNN, HBO and "Harry Potter" could come under Paramount's control
If the deal is completed, major media and entertainment assets would come under one corporate roof, including CNN, HBO, the "Harry Potter" franchise, "The Daily Show" and the rights to broadcast NFL games.
Paramount CEO David Ellison views the combination of the two major Hollywood studios as a way to strengthen the company's position amid years of changes in the market and competition from Netflix and Disney.
One of the most sensitive issues remains CNN's future. Ellison's critics previously accused him of changing CBS News' editorial policy in favor of Trump and expressed concern about how CNN's operations might change after the acquisition of Warner Bros.
Paramount has also promised to pay Warner Bros. shareholders $7 million for each day after September 30 if the deal has not been completed by then. Therefore, settling the dispute with the states by the end of the month would allow the company to avoid significant additional costs.
US court extends pause in Paramount and Warner Bros. $110 billion deal24.07.26, 05:37