Paramount Skydance settles state lawsuits, clearing path for Warner Bros Discovery merger

Paramount Skydance has reached a settlement with California and 11 other US states, as well as a Hollywood writers union, that had sued to block its proposed $110bn merger with Warner Bros Discovery. The agreement removes a major legal obstacle to what would be one of the largest media mergers in history.

According to reports on Monday, the settlement was reached with a coalition of 12 state attorneys general who had brought the lawsuits. As part of the deal, independent editorial boards will be set up to oversee CNN and CBS, amid concerns that political influence could affect their news coverage.

Free speech advocates have questioned whether this measure will be effective. Seth Stern, director of advocacy at the Freedom of the Press Foundation, argued to Al Jazeera that an independent editorial board represents only a limited safeguard, suggesting that the company's ownership structure remains a deeper issue. He also raised concerns that such a board, created through a government settlement, could itself raise free speech complications, since attorneys general would need some means of enforcement without directly interfering in editorial content.

Paramount Skydance is owned by tech billionaire Larry Ellison, who has close ties to US President Donald Trump, and is led by his son, David Ellison. This relationship has fuelled concerns about potential influence over coverage of the president and his administration. The settlement is seen as a significant win for David Ellison.

Under the terms of the agreement, Paramount Skydance would face a $30m penalty if it fails to produce 30 films annually as promised, according to Reuters.

The settlement concludes months of regulatory and legal disputes surrounding the merger, which would significantly consolidate control over Hollywood's film, television, streaming and news sectors.