A few days ago, Paramount announced it was leaving California for Texas, Georgia, or Tennessee. The move followed an antitrust lawsuit filed by California AG Rob Bonta and 12 other states against Paramount Skydance.
The opposition to the merger was rooted less in concern about having Paramount own Warner Bros. Discovery (WBD) than it was in the fact that CEO David Ellison was on friendly terms with President Trump. Absent that, we doubt there would have been much objection.
Now Paramount, California, and the other states have reached a settlement that will — for now — keep Paramount in California.
Paramount Settlement Protects Pluto TV, Sets BET & Comedy Central As Potential Divesture Targets ... https://t.co/h53e0sNXeO
— Deadline (@DEADLINE) September 22, 2026
Paramount Skydance Corp. has reached a settlement with California and other states suing to block its proposed acquisition of Warner Bros. Discovery Inc., according to a person familiar with the matter.
Settlement talks came to fruition over the weekend after four states that had opposed terms of a deal outlined with California conceded, said the person, who asked not to be named discussing confidential negotiations. The settlement, which is expected to be announced later today, paves the way for one of the largest mergers in Hollywood history.
Lawyers for the states worked all night on the agreement, the person said. Four states — Massachusetts, New York, Connecticut and Minnesota — had been holdouts on a possible settlement, but ultimately concluded the expense of the legal battle was not justifiable without California at the helm, the person said.
Ellison said that Paramount's history is in Los Angeles, and that the company will build its future there.
David Ellison says merged Paramount-Warner Bros is staying in LA: “We aren’t going anywhere. Our history is here and this is where our future is being built”
— Todd Spangler (@xpangler) September 21, 2026
https://t.co/I9kIFGBZuR
"Now that we reached and announced a settlement, we're eager to get to work building a stronger Hollywood," Ellison said. "Let me be clear: the newly merged company will be headquartered in Los Angeles. We aren't going anywhere. Our history is here and this is where our future is being built."
Ellison hopes to close the deal in the next two weeks.
We’ve reached a settlement agreement with Paramount that includes court enforceable guardrails to resolve the antitrust issues at the center of our case, protect competition and consumer choice, and provide for the production of significantly more films and a minimum of $1.5… pic.twitter.com/6bnckAfj1B
— Rob Bonta (@AGRobBonta) September 21, 2026
As part of the deal, Paramount will protect Pluto TV, the free, ad-supported streaming service for the next five years.
Paramount Settlement Protects Pluto TV, Sets BET & Comedy Central As Potential Divesture Targets ... https://t.co/h53e0sNXeO
— Deadline (@DEADLINE) September 22, 2026
It looks like the relocation announcement was a negotiation tactic, and it worked.
So the state AGs basically got nothing to settle their suit with Paramount? No cable divestments, a modest financial penalty (payable to whom, precisely?) if Paramount/Warners doesn't combine for 30 theatrical releases?
— Sonny Bunch (@SonnyBunch) September 21, 2026
Just the other day, actor Mark Ruffalo was urging Bonta to take the antitrust lawsuit all the way to trial.
Don’t you dare @AGRobBonta, do not cave. 5670 film makers put their necks on the line for you to fight this merger. Another 75,000+ and counting have signed to tell you not to concede in just 3 weeks. You work for the people -- the very people who will be hurt if you let this…
— Mark Ruffalo (@MarkRuffalo) September 19, 2026
Now Ruffalo says Gavin Newsom handed a win to President Trump — who had nothing to do with this merger — and "his billionaire cronies."
Gavin Newsom hands huge win to Trump and his billionaire cronies. https://t.co/G7GCPHnbcz
— Mark Ruffalo (@MarkRuffalo) September 21, 2026
The state realized it couldn't afford to lose Paramount and WBD. It just couldn't. Actors like Ruffalo, who has a net worth of $35 million, will be fine. But the production staff, who make far less, would be left without jobs, and the state would be left without a major source of revenue and film production.
Editor’s Note: Hollywood, academia, and liberal elites are out of touch with the average American.
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