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Paramount Nears Deal With California Officials Over $111 Billion WBD Acquisition

By  |  September 20, 2026
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Paramount Skydance is nearing an agreement with California officials that could remove a major obstacle to its $111 billion acquisition of Warner Bros. Discovery, potentially allowing one of the entertainment industry’s biggest transactions to move toward completion.

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    Negotiations between Paramount and a coalition of 12 Democratic-led states headed by California Attorney General Rob Bonta have accelerated and could produce a settlement within weeks, according to people familiar with the discussions cited by the Financial Times. The newspaper cautioned that the negotiations could still break down.

    Resolving the dispute would ease uncertainty that has surrounded the transaction since July, when the states and the Writers Guild of America filed an antitrust challenge. The litigation effectively prevented Paramount from completing the acquisition pending a court decision, according to the Financial Times. A trial is scheduled for March.

    The delay has increased pressure on Paramount to find a resolution. The Financial Times reported that after the end of this month, the company would be required to pay Warner Bros. Discovery shareholders $7 million for every additional day the transaction remains unfinished, an amount that could reach about $650 million in a quarter.

    Paramount executives have also publicly raised the possibility of moving the company’s headquarters out of California while the litigation remains unresolved, a move that has added pressure on Bonta as the two sides negotiate, according to the Financial Times.

    Neither Paramount nor Bonta’s office commented to the Financial Times.

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    Related: Paramount Threatens California Exit as Warner Bros. Antitrust Fight Escalates

    The $111 billion combination would significantly expand the entertainment assets controlled by Paramount Chief Executive David Ellison, the son of Oracle founder Larry Ellison. According to the Financial Times, the transaction would give Paramount control of Warner Bros. Discovery properties including the DC Comics and Harry Potter film franchises, CNN and TBS, as well as the HBO Max streaming platform.

    Investors responded sharply to signs that the legal impasse could be easing. Warner Bros. Discovery shares rose 8.2% in after-hours trading after The Wall Street Journal reported that Paramount was engaged in advanced settlement negotiations, according to the Financial Times.

    The dispute has centered in part on what concessions would be sufficient to address concerns about the combination. Paramount has offered to release 30 movies annually in theaters as a measure aimed at supporting the cinema business, the Financial Times reported. Bonta has resisted relying on such behavioral commitments and has instead sought more substantial structural remedies, including potential asset disposals, according to the newspaper.

    Outside the US state-level challenge, Paramount has made substantial progress securing regulatory clearances. The transaction has been approved in nearly 70 jurisdictions, with Mexico and the UK among the latest to sign off, according to the Financial Times.

    Another regulatory hurdle was cleared this week when the Federal Communications Commission approved a 49.5% foreign ownership interest associated with Middle Eastern sovereign wealth funds participating in the transaction, the Financial Times reported.

    A settlement with the California-led coalition would remove one of the most consequential remaining barriers to closing the acquisition. But with negotiations continuing and the March trial still scheduled, the timing of any resolution remains uncertain.

    Source: The Financial Times