Paramount clears major hurdle for $110 billion Warner Bros takeover

Discovery after reaching settlements with 12 U.S. states and the Writers Guild of America, resolving legal challenges that had sought to block the deal.

The agreements follow months of legal and regulatory disputes over a transaction that would bring together major film, television, streaming and news businesses under one media group.

As part of the settlement with the states, Paramount agreed to establish independent editorial boards to oversee CNN and CBS amid concerns about maintaining newsroom independence.

The settlements remove a significant legal obstacle to the merger, which had already received approval from the Trump administration.

Completing the transaction by September 30 would also allow Paramount to avoid a $7 million daily fee owed to Warner Bros shareholders for every day the deal remains unfinished after that date.

The news initially lifted shares of both companies. Paramount Skydance rose as much as 10% during trading before closing 3% lower, while Warner Bros Discovery gained 11%.

Earlier, Qazinform News Agency reported that the EU approved Paramount's acquisition of Warner Bros. Discovery with conditions.