AP source: Paramount reaches settlement with states that sued over its Warner buyout, clearing path for the mega merger

Paramount has reached a settlement with a group of U.S. states, including California and New York, that had previously filed lawsuits to block its proposed $81 billion merger with Warner Bros Discovery. The agreement removes a significant legal hurdle, clearing the path for the mega merger to move forward.

The states originally brought legal action over concerns that the massive media consolidation would extinguish competition within the industry. With the settlement now secured between Paramount and the 12 participating states, the path is cleared for the completion of the multi-billion-dollar business transaction.