Paramount Skydance settles lawsuit with US states, clearing path for Warner Bros Discovery merger

Paramount Skydance has settled a lawsuit with dozens of US states, removing a major hurdle to its $110bn (£82.8bn) merger with Warner Bros Discovery.

California Attorney General Rob Bonta told a news conference that state officials agreed to terms after securing commitments to protect competition across film and television, and broadcasting.

Still, "the settlement is not a vote of support for this merger," Bonta said. "It is not a blessing of the broader merger."

David Ellison, the company's chief, has threatened to move studio operations out of California.