Press Release: 9/22/2026
AG Campbell Announces Settlement In Paramount/Warner Bros. Lawsuit
For immediate release:
9/21/2026
BOSTON — Massachusetts Attorney General Andrea Joy Campbell today joined a coalition of 12 attorneys general in securing a settlement with Paramount Skydance Corporation (Paramount), resolving the states’ lawsuit alleging the merger of the entertainment giant and Warner Bros. Discovery (Warner Bros.) would harm competition by lowering output and raising prices, hurting both workers and consumers in the process.
The settlement, pending approval by the court, includes a five-year court enforceable commitment to increase film output, a minimum of an additional $1.5 billion commitment to bolster domestic film production, a $47.5 million fund for workers who are impacted by the merger, maintenance of a free streaming service, and restrictions on how the company handles cable negotiations to help keep prices competitive.
“From the outset, our goal has been to protect consumers and workers from the risks of putting too much power in the hands of one company,” said AG Campbell. “When the federal government chose not to challenge this merger, Massachusetts was one of 12 states to step up. While we were unable to secure every protection we fought for, having a seat at the table allowed us to secure enforceable protections for consumers that we could not guarantee through continued litigation. While I would have liked to see more, I’m pleased that we were able to blunt some of the negative effects of this merger and have the support of workers and labor unions of these protections.”
Today’s settlement includes:
An Annual Film Release Commitment: Paramount has agreed to a five-year term, during which the merged company will commit to release 30 wide-release films a year — including 20 films released to more than 2,000 screens — in the first two years; 32 wide-release films a year — with 21 films released to more than 2,000 screens — in years three, four, and five; and at least four independent films in each year of the commitment period. If Paramount fails to meet this film output requirement in any year, the company will be required to divest Miramax Studios and must pay $30 million per missed film toward the health care and retirement trust funds associated with the Writers Guild of America (WGA), International Alliance of Theatrical Stage Employees (IATSE), Directors Guild of America (DGA), International Brotherhood of Teamsters (IBT) and other unions, for Writers Guild of America (WGA), International Alliance of Theatrical Stage Employees (IATSE), Directors Guild of America (DGA) and other unions, toward the Motion Pictures & Television Fund, and to the National Association of Attorneys General (NAAG) for more antitrust enforcement.
Domestic Production Commitments: Paramount has agreed to bolster the merged company’s U.S. film production and spend an at least additional $1.5 billion over five years over its 2025 U.S. spending levels. If a federal film tax credit of at least 20% is passed, Paramount will be required to increase its production in the U.S. from its current rate (of 5%) to 20% of all film production for years one and two and at least 30% of all film production for the remaining years. If, in addition to a federal tax credit, a more expansive state film tax credit is also passed in either California or New York, then production investment would need to increase to at least 40% of all film production being in the U.S instead of overseas.
Independent Film Fund: The merged company will form and operate a fund for purchasing independent films and will make an annual contribution of $5 million per year to this independent film fund, for a total of $25 million.
Protections for Workers: The merged company will commit $47.5 million over five years for investments in workforce training and career development programs in film and television production communities at qualified educational institutions, film programs, and community arts organizations. The merged company must also honor previously established collective bargaining agreements and bargain in good faith with unions in years to come.
Cable Agreements: For five years, the merged company must conduct negotiations for Paramount basic cable channels independently from negotiations for Warner Bros. basic cable channels, preserving the existing competitive dynamic between the companies. Preserving competition helps to keep prices down for consumers. The merged company also must continue to offer a free streaming service, like Pluto TV, and maintain its current service and quality. Additionally, the company agrees to a News Editorial Independence Board to help CNN and CBS maintain editorial independence.
Ongoing Monitoring: The company also agreed to appointment of an independent monitor to oversee its compliance with this agreement.
In July, the coalition of attorneys general sued to challenge the merger of Paramount and Warner Bros., arguing the deal was illegal, likely to lessen competition, and threatened viewers with higher prices, the decline of theatrical exhibition of films, and a reduction in the variety, quality, and amount of content distributed.
In securing this settlement, AG Campbell joins the attorneys general of California, Arizona, Colorado, Connecticut, Minnesota, Nevada, New Jersey, New Mexico, New York, Oregon, and Washington.
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