Story perspectives

Paramount nears settlement over Warner Bros. Discovery merger terms

By Drooid · Sep 19, 2026, 10:06 PM UTC · How we work

Summary

Paramount CEO Negotiates Settlement

Paramount CEO David Ellison is negotiating a settlement with California AG Rob Bonta over the $110 billion Warner Bros. Discovery merger.
Proposed terms require independent monitoring of CNN’s editorial content.
The settlement also obligates Paramount to release at least 30 films each year.
Paramount shares rose nearly 7% in after-hours trading as settlement rumors spread.

Summary

FCC Approves Gulf Stake

FCC staff approved Paramount’s request for 49.5% foreign equity from Gulf sovereign funds.
The approval waives the FCC’s 25% foreign-ownership cap for broadcasters owning 28 TV stations.
FCC Media Bureau chief David Brown said the deal serves the public interest despite no voting rights.
Democratic commissioner Anna Gomez warned the Gulf funds could indirectly control the merged company’s news output.

History

Historical Context

President Bill Clinton signed the Telecommunications Act on February 8 1996, amending the 1934 Communications Act and removing radio-ownership caps. Critics note the law accelerated consolidation, shrinking major U.S. media firms from roughly 50 in 1983 to ten by 1996. Today Paramount Pictures is negotiating a 49.5% stake with Gulf sovereign investors, echoing the Act’s legacy of relaxed ownership rules.

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Paramount CEO Negotiates Settlement

Paramount CEO David Ellison is negotiating a settlement with California AG Rob Bonta over the $110 billion Warner Bros. Discovery merger.
Proposed terms require independent monitoring of CNN’s editorial content.
The settlement also obligates Paramount to release at least 30 films each year.
Paramount shares rose nearly 7% in after-hours trading as settlement rumors spread.

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