Warner Bros. Discovery and Paramount Skydance shares jump on settlement talks

Warner Bros. Discovery and Paramount Skydance shares jump on settlement talks

Mon, September 21, 2026 at 6:50 PM GMT+3 2 min read

Warner Bros Discovery Inc (NASDAQ:WBD, XETRA:J5A) shares rose over 9% to $30.50 and Paramount Skydance Corp (NASDAQ:PSKY) gained over 7% to $10.965 in early Monday trading as Paramount entered advanced settlement talks with California Attorney General Rob Bonta's office over its proposed $110 billion acquisition of Warner Bros. Discovery, the Wall Street Journal reported.

Bonta and 11 other state attorneys general sued in July to block the deal on antitrust grounds, according to the Los Angeles Times.

The lawsuit filed by 12 states and a separate antitrust case filed by the Writers Guild of America are among the remaining obstacles to Paramount's closing of its acquisition of Warner Bros. Discovery.

Under a proposed settlement, the combined company could face financial penalties if it fails to release at least 30 films in theaters each year, Bloomberg reported, citing two people familiar with the discussions.

Paramount would pay $30 million for each film it falls short of the annual target.

The company could also be forced to sell its 49% stake in Miramax, the film studio, if it misses the target.

Opposition to the proposed settlement intensified over the weekend as details emerged, including a plan to establish a bipartisan editorial board to monitor CNN, the cable news network owned by Warner.

Paramount chief executive David Ellison would control CNN alongside CBS News if the merger closes.

Critics of the acquisition have urged Bonta and other state attorneys general to resist pressure to reach a settlement.

Paramount has threatened to leave Hollywood if the antitrust dispute is not resolved soon, a prospect that has rattled state and local politicians concerned about losing entertainment industry jobs, according to LA Times.

The negotiations come during a critical week for the merger, which was first approved by Warner Bros. Discovery shareholders in April.

Paramount and Warner Bros. Discovery are still working to finalize the long-delayed deal, which would combine two of Hollywood's largest studios.