Paramount-Warner $81 bn merger clears key hurdle as states settle lawsuits

Twelve states and Hollywood writers challenging Paramount's buyout of Warner Bros Discovery agreed to settle their lawsuits on Monday, effectively paving the way for the $81 billion mega merger to cross the finish line, with some new commitments from the company.

The blockbuster deal will still vastly reshape Hollywood - bringing together two of the "big five" remaining studios, key TV networks like CBS and CNN and streaming platforms HBO Max and Paramount+, as well as decades-old libraries with titles ranging from "Harry Potter" to "Top Gun." But among terms of Monday's agreement announced by California Attorney General Rob Bonta - who led the states' case - Skydance-owned Paramount pledged to increase film production in the U.S., commit millions of dollars to a fund to support workers displaced by the merger and create new monitoring of the editorial independence of the company's news operations.

The settlement still needs a final sign-off by a judge.