A coalition of state attorneys general led by California's Rob Bonta reportedly reached a deal on Monday to let Paramount's acquisition of Warner Bros. Discovery proceed, an outcome that press freedom advocates and antitrust campaigners condemned as a disaster for journalism, entertainment industry workers, and American democracy.

The deal, which is set to be formally announced later Monday, will pave the way for the creation of one of the largest media conglomerates in the world, helmed by the son of a billionaire megadonor to President Donald Trump and the Republican Party.

If the merger is finalized, the resulting media behemoth would control nearly 30% of both wide-release theatrical film distribution and basic cable channel licensing in the US. The combination would also put CNN under Ellison's control, heightening press freedom concerns that have intensified since Paramount's takeover of CBS.

"The AGs’ capitulation marks a new low."

“Today, billionaires have yet again bribed, censored, and bullied their way to the top,” Alvaro Bedoya, senior adviser at the American Economic Liberties Project, said in a statement. “As a result, a billionaire media conglomerate closely allied with the president will soon own one of its closest rivals, including some of the nation’s most critical news outlets. Saudi Arabia’s sovereign wealth fund will co-own those outlets, too.”

Bedoya criticized Bonta and California's Democratic governor, Gavin Newsom, who privately pushed the state attorney general's office to settle the lawsuit out of court. Xavier Becerra, the frontrunner to succeed Newsom, also called for a settlement, citing Paramount's threat to leave California if its proposed acquisition of Warner Bros. was blocked.

“People want champions who are not afraid of rich bullies. Newsom, Becerra, and Bonta did not meet that mark," said Bedoya. "The people who work in the film and TV industry and the small businesses who support it will suffer as a result. And so will everyone who values dissent in our democracy.”

Jessica González, co-CEO of the advocacy group Free Press, also denounced Bonta for reneging on "his promise to enforce the law and protect consumers and workers."

"Hundreds of thousands of people called on our state AGs to stand up to the Ellisons, who have engaged in a campaign of corruption and extortion to pave the way for this unlawful merger. We can no longer rely on the federal government to enforce the law and protect regular people. That much is clear. But the AGs’ capitulation marks a new low. It’s a sad day for all of us who have been opposing this merger because it will cut jobs and raise prices, all as it consolidates the media even more to enable authoritarians."

Actor Mark Ruffalo, an outspoken opponent of the merger who was subjected to what critics called a corporate "smear campaign" because of his stance, trained his ire on California's governor in response to news of the settlement.

"Gavin Newsom hands huge win to Trump and his billionaire cronies," Ruffalo wrote on social media.

The trial was scheduled to begin in March of next year. In its original lawsuit against the proposed merger—filed shortly after the Trump Justice Department dropped its investigation of the proposed purchase—the coalition of 12 attorneys general warned the deal would "combine two of Hollywood’s five major film distributors and two of the five major basic cable channel owners, extinguishing competition between Paramount and Warner Bros. and inflicting substantial harm on movie theaters, basic cable distributors and, ultimately, audiences nationwide."

The settlement deal reached Monday also reportedly includes the lawsuit filed by the Writers Guild of America, which represents TV screenwriters and others in the entertainment industry.

Bloomberg reported that the attorneys general of New York, Connecticut, and other states that had pushed back during settlement talks were able to secure "independent editorial boards for CBS and CNN as part of the deal"—though it's unclear how such boards would function.

"The terms are said to include a financial penalty if the company fails to make good on a promise to distribute 30 films per year in theaters," Bloomberg added.

This news is deeply disappointing and a massive betrayal of everyday workers and small businesses.

David Ellison is willing to make big promises, like 30 films a year, because he knows he doesn't actually have to stand by it.

We've seen it before with past mergers: Promises… https://t.co/yAYXusKiRM
— American Economic Liberties Project (@econliberties) September 21, 2026

The Los Angeles Times noted that Paramount's purchase of Warner Bros. "will be heavily leveraged."

"The company’s bankers have lined up nearly $80 billion in debt to finance the merger. [Paramount CEO David] Ellison’s father, billionaire Larry Ellison, late last year agreed to backstop the $47-billion in equity needed to complete the acquisition. Royal families from Saudi Arabia, Qatar and Abu Dhabi have agreed to chip in $24 billion for an equity stake by assuming some of Ellison’s financial commitments."

González of Free Press warned Monday that "consolidating the media in the hands of friendly oligarchs is right out of the authoritarian playbook."

“What’s exceedingly clear is that our laws and our political system are not strong enough to resist the pressure and manipulation of corrupt billionaires," said González. "We need to strengthen democratic systems of government, including getting money out of politics, and pass laws that break up big media conglomerates. We need to ensure that a few billionaires can’t drown out the masses to dictate bad policy.”

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