Paramount Skydance acquisition cleared to close, but regulators impose five-year constraints

Paramount is pursuing a transformative acquisition of Warner Bros. Discovery to combine major film, television, news, cable and streaming assets into a larger entertainment platform. The legal barrier is now removed, but this is confirmation rather than a fresh surprise. On September 30, 2026, the court entered the states’ consent decree and modified the existing no-close order so the merger could proceed. 〔0〕 Because the settlement and WGA resolution were already announced on September 21, the new information is the court’s formal implementation, not a change in the transaction’s basic odds.

The merger can close, but the combined company inherits meaningful operating restrictions. For five years, it must maintain minimum theatrical output, preserve release windows, keep film rental practices consistent with prior best practices, and spend at least $300 million more annually on U.S. production than the two companies spent together in 2025. Those requirements support theatrical distribution and domestic production, but reduce management’s freedom to cut releases, accelerate streaming windows or consolidate studio operations for efficiency.

The enforcement teeth are substantial. Missing the annual film quota can trigger a $30 million payment for each shortfall film and, after the cure process, divestiture of Miramax; an uncured material breach of the cable-negotiation provisions can require divestiture of BET, VH1, Comedy Central, Smithsonian, Destination America and Science. 〔1〕 The decree also requires Pluto TV to remain a free, ad-supported service and creates monitoring, reporting and editorial-independence obligations.

The WGA settlement removes a second closing obstacle but adds ongoing labor commitments. Paramount must contribute $17.5 million to the Writers’ Guild-Industry Health Fund, pay up to $6 million of legal costs, and maintain CBS News Broadcast WGA-represented staffing at least at the closing-date baseline during the commitment period. These costs are modest relative to the transaction but reinforce that integration savings cannot come entirely from staffing and content operations.

Bottom line: The filing completes the expected legal step needed to let the Paramount-WBD transaction close. It advances the merger, but the business that emerges will have less operating flexibility and more mandated spending, content and labor commitments than a clean approval would have allowed.