Paramount reached a settlement with California and several other states to end an antitrust lawsuit blocking its acquisition of Warner Bros. Discovery. The deal allows the media company, led by David Ellison, to finalize the merger before it is required to pay ticking fees to shareholders. The agreement removes the requirement for Paramount to divest any of its cable channels as a condition for the transaction.

Terms of the settlement include a $1.5 billion investment in domestic film production and a commitment to produce at least 30 movies. Paramount will maintain its headquarters in California under a multiyear consent decree and will implement an independent editorial structure for CNN and potentially CBS. The resolution follows a weekend of negotiations involving New York Attorney General Tish James and the final holdout states.