Paramount, States Discuss CNN Oversight in Warner Bros. Merger Settlement Talks, Sources Say

Paramount and a group of states seeking to block its $110 billion acquisition of Warner Bros. Discovery are in settlement talks that could resolve the antitrust case as soon as this weekend, sources familiar with the matter told Reuters on Friday.

Key Concessions on the Table

Discussions to clear the final hurdle for the media megamerger reportedly center on specific commitments from Paramount. According to the sources, these potential terms include:

• The appointment of an independent content monitor for CNN.
• A formal commitment to a minimum number of theatrical film releases.

These talks represent an effort to address concerns raised by California and 11 other states that have challenged the acquisition. A spokesperson for the California Department of Justice stated that potential settlement talks are confidential and declined to confirm or deny their existence or substance. Paramount also declined to comment.

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Market Reacts to Settlement Hopes

The prospect of a settlement, which would allow Paramount to avoid paying millions in fees to Warner Bros. shareholders, sent both companies' shares higher in after-market trading. Following the news, Paramount’s shares rose nearly 7%, while Warner Bros. Discovery shares gained 8.4%.

Background on Regulatory Concerns

The states' push for oversight, particularly of CNN, stems from concerns over potential editorial influence. Lawmakers and critics have previously raised objections regarding Paramount CEO David Ellison, citing allegations that news coverage at the company's owned CBS News was tailored to favor political figures. The proposed monitoring of CNN is intended to safeguard the network's editorial independence after it comes under Paramount's ownership.