Paramount and California Attorney General in Advanced Talks to End Legal Battle Over Warner Bros. Discovery Merger

The Wall Street Journal reported on Friday (September 18, 2026) that Paramount Skydance is in advanced talks with California Attorney General Rob Bonta to settle the 12-state antitrust lawsuit blocking the proposed takeover of Warner Bros. Discovery, valued at about $110 billion.

Under the compromise being discussed, Paramount would keep both film studios as separate operations for a period, rather than merging them immediately. Bonta had previously sought “structural remedies” — asset sales — rather than mere behavioral promises.

Reuters also reported Friday that a deal could be reached as soon as this weekend. Also on the table, according to reports, are independent editorial oversight of CNN and a commitment to a set number of theatrical premieres; CEO David Ellison has promised more than 30 films in theaters each year. After the news, Paramount (PSKY) shares rose 9%, while WBD shares rose 8% after hours.

Context: Bonta and 11 other states sued in July, arguing the combined company would harm competition in theatrical films and cable television; the trial is set for March. If the deal is not closed by October 1, a $7 million-per-day “ticking fee” kicks in, while a court-ordered two-day settlement conference is set for October 14–15, with the Writers Guild of America also participating. CEO David Ellison had threatened to pull the studio out of California if no deal is reached.

Neither side has officially confirmed the development: Bonta’s office said settlement talks “are confidential” and would neither confirm nor deny them, while Paramount declined to comment.

Source: New York Post (per Wall Street Journal and Reuters reporting)