A settlement between Paramount Skydance and California, along with other states that had filed lawsuits to block its proposed acquisition of Warner Bros. Discovery, is imminent, according to a person familiar with the matter. The breakthrough in negotiations came over the weekend following concessions from four states that had previously opposed the terms of the deal as structured by California.
The settlement is expected to be announced later on Monday, clearing the path for one of the largest merger transactions in Hollywood history. State attorneys worked through the night to finalize the agreement.
Massachusetts, New York, Connecticut, and Minnesota had previously resisted a potential settlement, but ultimately concluded that continuing the litigation battle without California taking the lead was not worth the cost. The person indicated that the states that held out longer did manage to secure independent editorial boards for CBS and CNN over the past week.
Strengthening the independence of these boards was one of the key factors that led those states to finally agree to the settlement. According to the source, the boards will be composed entirely of journalists, with no executives or shareholders permitted to join, and they must also maintain a politically balanced composition.
Following the news, Paramount Skydance shares rose 7% to $10.91 in New York trading, after gaining as much as 13% during the session, while Warner Bros. Discovery shares climbed 10% to $30.62, having advanced as much as 11% intraday.
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