Paramount Discussed $1.5 Billion California Investment to Clear Merger Hurdle -- WSJ

By Jessica Toonkel and Dana Mattioli

California's attorney general and Paramount have discussed a series of potential concessions as part of advanced settlement negotiations, including a $1.5 billion investment by the company in production in California, according to people familiar with the discussions.

Paramount executives and a coalition of states that sued to block its $81 billion merger with Warner Bros. Discovery spent the weekend hashing out the details of a possible settlement. Such an agreement would clear the way for a deal that would bring HBO, CBS, CNN, streaming services and famed movie studios under one owner.

Among the concessions the parties have discussed beyond the sizable production investment: A promise not to sell either studio lot and to stay in the state of California, the people said. The company had explored moving out of the state as the deal faced opposition.

The parties have also considered potential penalties if Paramount doesn't make good on an earlier pledge to make 30 movies a year after the merger, including having to divest its stake in Miramax, known for such classic movies as "No Country for Old Men" and "Pulp Fiction," the people familiar with the matter said.

Other measures the sides have explored include the sales of some cable channels and the creation of a board to ensure that CNN retains editorial independence, people with knowledge of the talks said. The network has been a political flashpoint throughout Paramount CEO David Ellison's fight for Warner. Paramount had been discussing creating such an editorial board before the lawsuit.

A final deal hasn't been reached and it is unclear what terms the parties may ultimately agree to.

(END) Dow Jones Newswires

September 20, 2026 22:12 ET (02:12 GMT)