Advanced settlement negotiations are underway between Paramount and state regulators to remove antitrust hurdles blocking a massive media consolidation. The proposed agreement includes a $1.5 billion investment in California film production and a pledge not to sell local studio lots to ensure production stays in the state. Additional terms feature a financial penalty if the company fails to distribute 30 films per year in movie theaters.

New York AG Letitia James and Connecticut AG William Tong have expressed reservations regarding the current draft of the deal. James is seeking enhanced protections for workers after consulting with six unions, while Tong is pushing for guarantees to preserve the editorial independence of CNN and CBS News. Paramount faces a March trial and a $7 million daily fee starting October 1 if the $81 billion acquisition of Warner Bros. Discovery is not closed.