The Writers Guild of America (WGA) has settled its lawsuit seeking to block Paramount Skydance’s acquisition of Warner Bros. Discovery, removing what had been the other major legal obstacle standing between David Ellison and the completion of Hollywood’s largest merger.
The settlement comes on the same day that California Attorney General Rob Bonta and a coalition of 11 other state attorneys general reached their own agreement with Paramount, ending the states’ antitrust challenge to the roughly $110 billion transaction.
According to Variety, the WGA has now agreed to settle its separate case against Paramount as well.
The state attorneys general and the WGA had been the two remaining obstacles preventing Paramount from completing its acquisition of Warner Bros. Discovery.
With both cases now headed toward resolution, Paramount CEO David Ellison says the company has achieved “complete clearance” for the merger.
The WGA Gives Up Its Fight to Block the Merger
The WGA sued Paramount in July, arguing that combining Paramount and Warner Bros. would further consolidate Hollywood and reduce competition for writers.
The union alleged that a combined company would have greater leverage to suppress writers’ compensation, reduce the amount of film and television programming produced, and eliminate employment opportunities.
Its case was proceeding alongside the lawsuit brought by the 12 state attorneys general, with both challenges scheduled to go to trial in March 2027.
That trial now appears to be off the table.
Paramount Pictures Logo – YouTube, ClosingLogosHD
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The WGA settlement reportedly includes several significant concessions from Paramount.
TheWrap reports that Paramount will contribute $17.5 million to the WGA health plan, pay the union’s legal fees, and has agreed to protections involving layoffs at CBS News’ broadcast operation.
Importantly, the WGA reportedly continues to oppose the merger despite settling its lawsuit. The union’s decision appears to be a practical recognition that continuing its challenge became considerably more difficult once the states abandoned their own case.
Paramount Has Now Settled Both Lawsuits
Earlier Monday, Bonta announced a sweeping settlement between Paramount and the 12-state coalition that had attempted to block the Warner Bros. acquisition.
That agreement includes a number of enforceable commitments from Paramount.
The combined company is required to release at least 30 theatrical films annually during the first two years following the merger, increasing to 32 films annually for the following three years.
At least four films per year must be independent productions, while at least 20% must qualify as major tentpole releases.
California Attorney General Rob Bonta – YouTube, KCRA 3
Paramount also agreed to increase annual U.S. film production spending by at least $300 million above 2025 levels.
Additionally, an independent editorial board consisting of five experienced journalists will oversee editorial independence protections involving both CNN and CBS News.
Reuters reports that the settlement includes penalties tied to Paramount’s theatrical commitments.
These agreements represent a dramatic reversal from where the merger stood just weeks ago.
Bonta had previously demanded major structural remedies and led an antitrust lawsuit intended to stop the transaction entirely.
Now both his coalition and the WGA have settled.
Ellison Declares Victory
Ellison wasted little time declaring that the remaining barriers to the Warner Bros. takeover had been eliminated.
“We are grateful to Attorney General Bonta and his fellow AGs, as well as the WGA, for engaging in good faith to find a path forward to a resolution that serves all parties, and to Governor Newsom for his support throughout this process,” Ellison said in a statement.
David Ellison talks to Bloomberg – YouTube, Bloomberg Podcasts
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Ellison argued that the commitments would strengthen domestic film production and help revitalize Hollywood. More importantly, he declared that Paramount has now addressed the concerns raised by both sets of plaintiffs.
“Having now addressed the State AGs’ and WGA’s concerns, we have complete clearance for this merger and look forward to putting these commitments into action,” Ellison said.
That’s about as definitive a statement as Paramount could make.
Paramount-Warner Bros. Is Finally Approaching the Finish Line
The WGA settlement is particularly important because the union’s lawsuit was the lingering question following news that Bonta and the states had reached an agreement with Paramount.
Without the WGA, there is no longer a separate union lawsuit waiting to carry the antitrust battle forward.
The timing also eliminates an enormous financial threat hanging over Paramount.
Beginning October 1, Paramount was facing a so-called “ticking fee” estimated at approximately $7 million per day if the Warner Bros. transaction remained unable to close.
Paramount had become increasingly aggressive as that deadline approached, demanding that the states and WGA post a massive $1.88 billion bond if they intended to keep the acquisition frozen while their lawsuits continued.
The logo for Paramount Skydance – Paramount
That fight now appears moot.
Ellison reportedly told Paramount employees Monday that the company hopes to complete the Warner Bros. transaction in approximately two weeks.
After months of lawsuits, injunctions, threats, negotiations, and uncertainty surrounding the future of two of Hollywood’s most storied studios, the situation has changed dramatically in a matter of hours.
The states have settled, The WGA has settled, and Paramount says it has complete clearance.
Barring an unexpected new complication, the Paramount-Warner Bros. era now appears to be on the verge of officially beginning.
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