Paramount in talks to settle $110 billion Warner merger
Paramount is deep in talks with California and other states to settle legal pushback over its $110 billion plan to buy Warner Bros. Discovery.
The deal has hit resistance from 12 Democratic states and the Writers Guild, but a settlement could be reached at meetings set for October 14-15, 2026.
News of the talks gave Paramount's stock an 8.7% boost in after-hours trading.
Paramount faces $7 billion penalty
To win approval, Paramount is offering to ramp up movie releases (30 per year) and TV production, but California's Attorney General Rob Bonta says they may need bigger changes, such as a sale of assets.
Others have speculated that Paramount might sell some of the Warner Bros. cable-TV channels, such as TBS and CNN.
If a deal isn't reached by the end of September 2026, Paramount faces $7 million in daily fees and a massive $7 billion penalty if the merger falls through.
The stakes are high, with control of DC Comics and Harry Potter franchises on the line.