Paramount, states discuss CNN monitoring, theatrical commitments in Warner Bros settlement talks

Sept 18 (Reuters) – Sources familiar with the matter told Reuters on Friday that Paramount and the states seeking to block its $110 billion acquisition of Warner Bros could reach a settlement as soon as this weekend, with independent monitoring of CNN content among the terms being discussed.

The sources also said a commitment regarding the number of theatrical releases is among the settlement terms under negotiation.

Paramount shares climbed nearly 7% after markets closed, while Warner Bros Discovery stock gained 8.4% in after-market trading.

The case filed by California and 11 other states is the last obstacle in Paramount’s bid to become a major competitor to Netflix and Disney. A settlement this week could help Paramount avoid paying millions of dollars in fees to Warner Bros shareholders.

A spokesperson for the California Department of Justice said potential settlement talks are confidential. "We cannot confirm or deny whether settlement talks are occurring or their alleged substance," the spokesperson said.

Paramount would not comment.

Lawmakers have criticized Paramount CEO David Ellison for shaping news coverage at Paramount-owned CBS News to favor President Donald Trump. Critics fear how he would manage Warner’s CNN once it comes under his ownership.