Mergers & Acquisitions ·
U.S. court lifts injunction on Paramount-WBD merger, imposing film release mandates and $1.5B production spend
PSKYSkydance Corp
Paramount Skydance Corporation filed an 8-K on September 30, 2026, disclosing that a U.S. District Court entered a Consent Decree with twelve Plaintiff States and a Settlement Agreement with the Writers Guild of America (WGA), resolving antitrust lawsuits challenging its proposed merger with Warner Bros. Discovery (WBD). The court order modified existing no-close injunctions to permit the WBD Merger to proceed. Under the Consent Decree, the combined entity must release at least 30 films annually for two years and 32 thereafter, maintain specific theatrical windows, spend $1.5 billion more on U.S. production over five years, and establish a News Editorial Independence Board. Penalties for non-compliance include divestitures of Miramax Studios or basic cable channels (BET, VH1, Comedy Central, Smithsonian) and $30 million contributions per film shortfall. The WGA settlement requires a one-time $17.5 million contribution to the Writers’ Guild-Industry Health Fund within seven days of closing and up to $6.0 million in legal fees. Paramount Skydance operates as a global entertainment and media conglomerate.