Paramount Skydance Corporation is publicly calling on the attorneys general of California and eleven other states to begin settlement negotiations to resolve ongoing antitrust litigation that is currently delaying the company’s proposed acquisition of Warner Bros. Discovery. The entertainment conglomerate recently announced that it has successfully secured regulatory clearance from nearly seventy global jurisdictions, leaving the lawsuit brought by these twelve states as the final obstacle to completing the merger.
According to the announcement, independent regulators across these regions examined the proposed combination using legal standards and market definitions that account for current patterns of entertainment consumption and media competition. In each case, the authorities determined there was no basis to block the transaction. Paramount Skydance indicated that the companies could proceed to close the deal immediately and begin realizing the operational and industry benefits identified by these global reviewers, as well as by theater owners and other sector participants. The sole remaining barrier identified is ongoing litigation initiated by attorneys general from 12 U.S. states.
The company has specifically called on California and the 11 other participating states to begin settlement discussions. Paramount Skydance stated that it has repeatedly sought good-faith engagement with the state attorneys general to resolve the legal challenge and clear the path for the combination. It noted that while it maintains confidence in its legal and factual position, it has already proposed various commitments and concessions and continues to express willingness to collaborate constructively with the state officials. The goal of such talks, as framed by the company, would be to advance the interests of employees and the creative community both in California and internationally, consistent with the approach taken successfully with regulators in the 68 jurisdictions that have already granted approval.
Paramount Skydance highlighted that the current trajectory pursued by the 12 state attorneys general risks imposing costs without corresponding benefits to the residents of those states. An extended timeline leading to a trial, potentially lasting more than eight additional months beyond the nine months of prior engagement, would generate expenses related to penalty fees, legal proceedings, and operational disruptions. As an organization accountable to multiple stakeholders, including pension funds and state retirement systems, the company indicated it must evaluate how to manage these added financial pressures while safeguarding the longer-term viability of the combined entity. Settlement discussions were presented as a preferable alternative that could better serve workers, consumers, and residents across the 12 states involved.
The announcement detailed several findings from international regulators that address core arguments raised in the state litigation. On overall competition, authorities worldwide concluded that the merger does not threaten competitive dynamics. The UK Competition and Markets Authority determined the transaction does not create a realistic prospect of a substantial lessening of competition. Regarding cable networks, bodies such as the European Commission and the U.S. Department of Justice observed that the relevant market now involves direct competition between traditional cable offerings and streaming platforms rather than solely among cable providers. Streaming services offering children’s content and other programming were viewed as continuing competitive constraints, with streaming exerting increasing pressure on linear and broadcast networks.
In the area of theatrical film distribution, regulators described the market as broad, dynamic, and driven by audience appeal rather than narrow categories of top-grossing titles. The Australian Competition and Consumer Commission found the deal unlikely to substantially lessen competition, noting that the combined company would face constraints from other major studios including Disney, Sony, Universal, Amazon MGM, StudioCanal, and independent producers. Brazil’s competition authority treated film distribution as a single relevant market without further segmentation. The Common Market for Eastern and Southern Africa characterized the theatrical sector as highly competitive, dynamic, and hit-driven due to the presence of numerous rivals.
On film output and quality, international reviewers found no support for assertions that the transaction would reduce the volume or standard of films produced. The Australian authority specifically concluded that the merged entity would retain incentives to generate a comparable number of films of similar quality. Paramount Skydance referenced its own commitment to release at least 30 high-quality films each year across the combined operations as further reinforcement of this outlook. Across theatrical distribution, film production, streaming, and content licensing, the global authorities identified robust ongoing competition, contrasting with the narrower market definitions advanced in the state case.
The company emphasized that the consensus reached by 68 jurisdictions represents a clear determination that the transaction is lawful, supports competition, and raises no antitrust concerns. The lawsuit from 12 of the 50 state attorneys general was described as standing apart from this worldwide regulatory agreement, the underlying facts, applicable law, and economic analysis. Although Paramount Skydance indicated readiness to present its arguments at trial if necessary, it underscored that continued delay harms not only the two companies but also the wider entertainment industry and the constituents represented by the 12 state officials.
Paramount Skydance, formed through the earlier combination of Paramount Global and Skydance, operates as a global media and entertainment company with segments covering studios, direct-to-consumer platforms, and television media. Its portfolio includes established brands spanning film, television, news, sports, and streaming services. The announcement reiterated that resolution through settlement talks with California and the other states would allow the companies to move forward in delivering enhanced investment capacity for premium content, support for creative talent and workers, and expanded entertainment options for audiences. The firm continues to invite constructive dialogue as the preferred means of addressing remaining concerns while aligning with the determinations already reached by competition authorities worldwide.
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