Paramount Skydance has come to an agreement with a coalition of state attorneys general who had been suing to block its acquisition of Warner Bros. Discovery, according to Bloomberg. This settlement removes one of the significant remaining obstacles to a deal that would transfer ownership of AEW’s television rights to the merged company.
Bloomberg reported on Monday, citing an insider, that after four states previously opposing the terms along with California relented over the weekend, the settlement was expected to be announced later that day. The full details of the agreement have not yet been disclosed.
The antitrust lawsuit was initiated on July 13 in federal court in Northern California by a coalition of 12 states led by California Attorney General Rob Bonta, with support from Arizona, Colorado, Connecticut, Massachusetts, Minnesota, Nevada, New Jersey, New Mexico, New York, Oregon, and Washington. The states argued that the merger would consolidate two of Hollywood’s top five film distributors and two of the five major basic cable channel owners. Following a temporary restraining order by the court, the companies agreed not to close the deal until either a court decision or June 1, 2027, whichever came first. A trial was scheduled for March 2, 2027, after Paramount’s unsuccessful attempt to start in November.
Reportedly, the settlement includes establishing independent editorial boards for CNN and CBS News, along with a financial penalty if the merged company does not release at least 30 films theatrically each year, a target frequently mentioned by Paramount CEO David Ellison. Other potential concessions discussed over the weekend, according to the Wall Street Journal and Bloomberg, included maintaining the company’s California base, keeping both studio lots, and selling some cable channels. It remains unclear which of these were finalized.
The states that had initially held out asked for more protections than California’s proposal. CNN reported that New York Attorney General Letitia James sought additional worker protections, with Connecticut and at least two other states also expressing concerns. These holdout states reportedly secured the independent editorial boards as part of the final deal.
If the agreement is approved, it would also save Paramount from paying a daily fee of about $7 million to Warner Bros. Discovery shareholders beginning October 1. The merger deal signed in late February aimed for a third-quarter closing. Despite the settlement, Variety noted that finalizing the deal may still take at least a week because of the financing structure, which includes roughly $24 billion from Middle Eastern governmental investors.
However, the settlement does not resolve all issues. The Writers Guild of America West has initiated a separate antitrust lawsuit to block the merger, which continues to be active. Nonetheless, the merger has obtained regulatory approvals in over 65 countries, and the Federal Communications Commission recently approved the proposed foreign ownership model for the combined company.
For AEW, this development is significant because its current U.S. media rights agreement with Warner Bros. Discovery, announced in October 2024 and reportedly worth around $185 million annually, runs through the end of 2027, with an option for 2028. AEW’s programs—Dynamite on TBS and Collision on TNT—are also available on HBO Max. Renewal conversations would likely be held with the merged company, which Ellison has said plans to combine HBO Max and Paramount+ into one streaming service.
AEW CEO Tony Khan has expressed strong support for Ellison and the merger, consistently forecasting a positive impact on AEW. In a May Bloomberg TV interview promoting Double or Nothing, Khan said he was “very excited” about the merger and confident Paramount would continue backing AEW, citing his personal connection with Ellison through their NFL affiliations.
This issue has gained attention because Paramount also holds major UFC rights under TKO Sports, which owns WWE. The Wrestling Observer Newsletter reported in May that WWE insiders expected Paramount to drop AEW post-merger, but Khan dismissed these claims. According to Fightful, a Paramount source said there is no exclusivity clause in its TKO deal preventing it from airing other wrestling content.
Neither Paramount nor Warner Bros. Discovery have publicly responded to the reports about the settlement.
Fan Take: This settlement is a pivotal moment for fighting fans because it secures AEW’s place on major cable networks during a crucial period of growth. With the merger potentially bringing fresh investment and a unified streaming platform, fans might expect even greater accessibility and production quality in pro wrestling’s evolving landscape.
Source: wrestlingnews.co
