Paramount’s $110 bn Warner Bros deal clears major hurdle:Touted to be one of world’s largest media mergers, Trump’s friend owns Paramount

Paramount Skydance’s $110 billion worth Warner Bros Discovery deal cleared major legal hurdle on Tuesday, 22 September, 2026, in the US. Touted as one of the world’s largest media mergers, the deal involves American multinational mass media and entertainment conglomerate Paramount Skydance Corporation, owned by US President Donald Trump’s friend, David Ellison. Paramount settled with a California-led group of US states and a Hollywood writers’ union, paving the way for one of the largest media mergers in history, Reuters reported. Paramount agrees to comply with film quotas Under the settlement, Paramount agreed to comply with temporary film quotas and establish a news oversight committee, allowing it to avoid a forced divestment of cable assets, including CNN, or its valuable film franchises. Deal could hurt jobs in Hollywood: Opponents While Warner Bros Discovery shareholders welcomed the settlement, opponents of the merger criticised the deal, arguing that it could hurt jobs in Hollywood. Paramount shares gave up some of their earlier gains on Monday, while Warner Bros Discovery shares jumped more than 10%. The states’ settlement also left the union facing the prospect of pursuing the complex legal challenge without support from government enforcers, a case that could have cost millions of dollars. Deal enables Paramount to broadcast more Hollywood movies Furthermore, the settlement represents a significant victory for Paramount CEO David Ellison, who spent months battling the states to secure a deal that would substantially consolidate the company’s presence across Hollywood’s film, television, streaming and news businesses. What the settlement entails? As part of the settlement with the states, Paramount committed to increasing film production in the US, including spending at least an additional USD 300 million annually on domestic production and meeting US theatrical release quotas for five years. California Attorney General Rob Bonta said the company would produce 30 films annually during the first two years of the agreement, followed by 32 films a year over the subsequent three years, according to ANI. Under the settlement, Paramount will also establish a news editorial independence board aimed at safeguarding editorial independence at CBS and CNN.
The companies had earlier said the merger is expected to generate $6 billion in savings, including through cost reductions that could affect jobs across Hollywood and at the CNN and CBS newsrooms. The combined company is also expected to carry $80 billion in debt