Paramount Skydance clears major hurdle in $110 billion Warner Bros deal

Paramount Skydance has moved closer to completing its $110 billion acquisition of Warner Bros. Discovery after settling legal challenges brought by California and 11 other US states, as well as the Writers Guild of America.

The deal will bring major Hollywood studios, streaming services and television networks including CBS and CNN under the same corporate umbrella.

Under the settlement, Paramount has committed to increased US film production, releasing at least 30 theatrical films annually during the first two years and 32 in each of the following three years. It will also establish an independent editorial oversight board covering CBS and CNN.

The merger is expected to produce around $6 billion in savings, although critics, including the Writers Guild, have warned about potential job losses and greater concentration within Hollywood. Paramount is now raising billions of dollars in additional debt to finance the acquisition, which would create one of the world’s largest entertainment and media groups.