Paramount Skydance Corporation (PSKY) announced it has entered into a Consent Decree with 12 U.S. states and a separate settlement with the Writers Guild of America (WGA), resolving antitrust lawsuits that sought to block its previously announced merger with Warner Bros. Discovery (WBD). On September 30, 2026, a U.S. District Court entered the States Consent Decree, officially permitting the WBD merger to close.
Key Details
- States Consent Decree: Resolves the lawsuit filed by 12 states. For a five-year period, the combined company must increase U.S. production spending by $1.5 billion, release 30-32 films annually with a minimum 45-day theatrical window, and establish a News Editorial Independence Board for CBS News and CNN. The company will also reimburse the states up to $40 million for legal fees.
- Writers Guild of America (WGA) Settlement: Resolves the WGA's lawsuit with a one-time $17.5 million contribution to the Writers’ Guild-Industry Health Fund and a payment of up to $6.0 million for the WGA's legal fees. The company also agreed to maintain WGA-represented staff levels at CBS News.
- Merger Impact: These agreements remove significant legal obstacles for the WBD merger. Management stated it does not expect the terms to materially impact its previously announced synergy and leverage targets.