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Paramount settles lawsuit with US states, clearing way for $110bn merger with Warner Bros

The deal includes an agreement to produce 30 films a year, or Paramount will be forced to sell off parts of its company.

BBC Business

A coalition of states led by California had challenged the deal, raising concerns over competition across film and television.

Paramount Skydance has settled a lawsuit with dozens of US states, paving the way for its $110bn (£82.8bn) merger with Warner Bros Discovery.

California Attorney General Rob Bonta said state officials agreed to terms after securing commitments to protect competition across film and television, and broadcasting.

To prevent the studio from fulfilling its annual quota with low-budget or automated content, Bonta said there were strict guardrails against "AI-generated" films.