Paramount will not have to sell major assets such as CNN and now expects to close its takeover of Warner Bros. Discovery in about two weeks, avoiding millions in late fees if the deal missed an Oct. 1 deadline.
The outcome comes despite California Attorney General Rob Bonta saying this summer he opposed “behavioral” remedies—essentially promises to behave rather than forced divestitures.
Bonta became increasingly isolated. Paramount had already struck deals with movie theater chains and settled with regulators worldwide, including FCC Chairman Brendan Carr.
Bonta’s settlement prompted other opponents, including additional states and the Writers Guild unions, to settle as well.
David Ellison now faces the harder work of combining the two companies, including expected broad layoffs. The merged business will carry about $80 billion in debt, leaving little financial room as it competes with Netflix and Disney.
More media deals are likely to follow. CNN, which joined other networks in suing the Trump administration after the president barred them from White House grounds, is expected to face heightened scrutiny.