Skydance completes merger of Paramount, Warner Bros.

Paramount Skydance won a federal judge’s approval Sept. 30 to proceed with the deal. U.S. District Judge Martínez-Olguín in Oakland approved Paramount Skydance’s settlement with Democratic attorneys general from 12 states, who sued in July to stop the merger.

California Attorney General Rob Bonta led the coalition and argued the deal was illegal, likely to lessen competition, and threatened viewers with higher prices and reduced content variety. At a July press conference in Southern California with the famous Hollywood sign behind him, Bonta said movies and television programs are not run-of-the-mill commodities.

“The film and entertainment industry doesn't exist just to buy and to sell them,” Bonta continued. “It exists to tell stories, to spark ideas and spark curiosity, to inspire and sometimes to inform, to open our eyes to new perspectives we may have never considered before, to expose us to the things we don’t know we need to be exposed to.”

The resulting settlement, which resolved the antitrust lawsuit originally scheduled to go to court in 2027, includes strict court-enforceable guardrails. For example, Paramount Skydance agreed to an annual film release commitment spanning a five-year term, releasing 30 films a year (including 20 wide releases) in the first two years and 32 films a year (with 21 wide releases) in years three, four,and five.

This 30-films promise was made before the legal dispute and settlement, but was written off as an “old, stale promise” by the coalition of state attorneys general.

The company also commits to releasing at least four independent films annually, with any failure to meet these output requirements triggering a $30 million penalty per missed film — directed toward union health and retirement trust funds — and a mandatory divestiture of Miramax Studios.

Additionally, Paramount will boost domestic production by spending at least an additional $1.5 billion over five years above 2025 U.S. spending levels, with production requirements scaling higher if federal and state film tax credits are passed in California or New York.

Further supporting the industry, a total $25 million independent film fund ($5 million annually for five years) will be operated for purchasing independent films. For labor, a $47.5 million Workforce Fund will support training and career development for displaced workers, alongside commitments to honor collective bargaining agreements.

Finally, the agreement introduces key cable and editorial guardrails requiring Paramount to negotiate basic cable channels independently for five years to keep consumer prices competitive, maintain a free streaming service like Pluto TV, and establish a News Editorial Independence Board to safeguard CNN and CBS, which are now both owned by Skydance.

“We believe this settlement, which resolves our antitrust concerns in every market alleged in our case, protects competition and consumer choice, and puts workers' needs, concerns, and futures first, is the best course of action,” said Bonta in a Sept. 21 press release.

Labor leaders widely praised the agreement's focus on domestic stability and employment.

IATSE International President Matthew D. Loeb, Directors Guild of America National Executive Director Russell Hollander, Teamsters General President Sean M. O’Brien, and SAG-AFTRA leadership all voiced appreciation in Bonta’s press release for the enforceable framework protecting jobs.

Still, free-market critics raised concerns over regulatory overreach.

Wayne Winegarden, a senior fellow in business and economics at Pasadena, Calif.-based Pacific Research Institute, said state attorneys general could have saved time and money by not filing the lawsuit.

"The state AGs could have not only saved time and money by not challenging this, but they also could have avoided a troubling precedent," Winegarden told The Center Square Tuesday. "State AGs should not duplicate the anti-trust efforts of the federal government. Hopefully, their actions will not encourage more regulations through litigation."

Alongside California, the state attorneys general involved in the antitrust lawsuit were from Arizona, Colorado, Connecticut, Massachusetts, Minnesota, Nevada, New Jersey, New Mexico, New York, Oregon, and Washington.

President Donald Trump praised the merger when asked about it outside the White House. "I"m happy. That's great. They're terrific people, and it's going to be a great company."

In addition to Paramount Pictures and Warner Bros, the merger means Skydance owns CBS, CNN, TNT, TBS, Nickelodeon, Food Network, Comedy Central, HGTV, New Line Cinema, DC Studios, DC Comics and streaming services such as HBO Max, Paramount+, Pluto TV and Discovery+.