Paramount Files Consent Decree Outlining $300 Million Annual U.S. Film Spend, Divestiture Remedies in Warner Bros. Discovery Merger

The proposed consent decree and its court path

Paramount Skydance and a coalition of 12 state attorneys general submitted a proposed consent decree to a judge for approval on September 21, 2026, resolving the blockbuster antitrust suit that had threatened Paramount's planned acquisition of Warner Bros. Discovery. California Attorney General Rob Bonta announced the settlement at a press conference the same day, framing the filing as the formal step that converts the agreement into a court-supervised package of remedies covering film production, cable distribution and newsroom governance.

Film-release and production commitments

The decree imposes a minimum annual number of film releases in both wide-release and anticipated top-grossing "tentpole" categories, a commitment to spend at least $300 million more annually on U.S. film production than was spent in 2025, and constraints on pricing charged to theaters. It also sets required levels of domestic film production in the event Congress creates a federal film tax credit. If any film-related commitment is breached, one listed remedy is divestiture of the company's interest in Miramax.

Cable-distribution restrictions and channel divestitures

For basic cable, the decree requires separate negotiations over distribution of Paramount- and Warner Bros.-owned cable channels for five years, restricts changes to affiliate-fee negotiations and agreements with distributors, and bars the use of one defendant's confidential information in negotiating affiliate fees for the other. A breach of those cable terms could force Paramount to divest channels including BET, VH1, Comedy Central, Smithsonian Channel, Destination America and Science.

News editorial independence board

The decree establishes a News Editorial Independence Board tasked with setting guiding editorial and journalism principles for the combined entity's news channels, addressing CBS News and CNN. Connecticut Attorney General William Tong said in a statement that his office had pushed for full divestiture of CNN and CBS News and was "deeply disappointed that we could not do more," underscoring that the board was a compromise rather than the structural separation some states sought.

Additional industry and labor commitments

Beyond film and cable, the proposed decree requires continued investment in the entertainment industry, including maintaining the production lots of both defendants, honoring collective bargaining agreements and committing funds for workforce training. The filings were reported by Deadline and The Hollywood Reporter based on the proposed consent decree submitted to the court.