A group of state attorneys general led by California agreed to a settlement framework on Monday that removes the final antitrust hurdles for the acquisition of Warner Bros. Discovery. The agreement with 12 state jurisdictions and the Writers Guild of America prevents Paramount from paying ticking fees to shareholders and removes a requirement to sell cable channels. Terms include a $1.5 billion investment in domestic production and a commitment to release at least 30 films annually in theaters to avoid financial penalties.

The consent decree requires the formation of a News Editorial Independence Board to establish journalism principles for the combined company's news channels, including CBS and CNN. Connecticut Attorney General William Tong expressed disappointment that the states could not secure a full divestiture of these outlets, though he noted the board structure is enforceable. David Ellison's company expects the $110 billion merger to take effect in early October after receiving approval from authorities in nearly 70 jurisdictions worldwide.