Lawmakers from several U.S. states are discussing a deal with Paramount to drop the antitrust litigation preventing its buyout of Warner Bros. Discovery. The proposed merger faces a March trial and includes a $7 million daily fee starting Oct. 1 if the companies fail to close the transaction, which has been stalled for two months.

New York, Connecticut and at least two other states are holdouts seeking additional remedies, including protections for workers and commitments to domestic movie production. New York Attorney General Letitia James has consulted with at least half a dozen unions and is pushing for terms to ensure CNN's editorial independence, sources tell CNN.