Arabic version: باراماونت تسوّي دعوى الولايات بشأن اندماج وارنر براذرز

According to BBC News, 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 led the legal challenge alongside attorneys general from Arizona, Colorado and New Jersey.

California Attorney General Rob Bonta said officials agreed to terms after securing commitments intended to protect competition across film, television and broadcasting. He stressed that the agreement was not an endorsement of the merger, saying he did not think the two companies should merge.

Under the settlement, Paramount must release at least 30 films annually. Bonta said strict guardrails would prevent the company from meeting that quota with low-budget or automated content, including “AI-generated” films. The agreement also requires 20% of film production to take place in the US for the first two years, rising to more than 30% over the following three years.

Paramount chief executive David Ellison said concerns raised by state attorneys general and the Writers Guild of America had been addressed. He said the company now had complete clearance for the merger and would put the commitments into action. An independent monitor will oversee compliance with the settlement.

Bonta said the commitments would boost US film and television production and create jobs, estimating at least $300m to $1.5bn in additional economic activity. He said production commitments could increase by up to 700% if Congress passes a federal film tax credit.