Paramount Settles Multistate Lawsuit Over Proposed Warner Bros. Deal

MT newswire2026/09/21 20:29

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04:29 PM EDT, 09/21/2026 (MT Newswires) -- Paramount Skydance (PSKY) has agreed to settle a multistate antitrust lawsuit involving its proposed acquisition of Warner Bros. Discovery (WBD), several attorneys general said Monday in separate statements. Earlier this year, a California-led coalition of 12 states sought to block the deal, alleging that the merger would lessen competition by lowering output and raising prices. Paramount announced a deal in February to buy Warner Bros. after streaming giant Netflix (NFLX) withdrew from its proposed purchase of the HBO Max owner. Paramount's proposed settlement with the states includes a five-year commitment to increase film output and a provision to spend at least $1.5 billion on domestic film production, the attorneys general of California, New Jersey, Washington, Oregon, Arizona, Colorado and New York said. A $47.5 million fund for merger-impacted workers and restrictions on cable price negotiations are also part of the deal, which is subject to court approval. "Today's settlement protects workers, jobs, and Hollywood," California Attorney General Rob Bonta said in a post on X. New Jersey Attorney General Jennifer Davenport said the settlement should protect consumers from hikes to cable fees and workers from cuts to film and TV production. Washington's Nick Brown, Arizona's Kris Mayes, Oregon's Dan Rayfield, Colorado's Phil Weiser and New York's Letitia James separately endorsed the concessions secured. Paramount and Warner Bros. didn't reply to MT Newswires' requests for comment. Paramount has also reached a settlement with the Writers Guild of America, which had filed a case against the Warner Bros. deal, Reuters reported Monday. Earlier this month, Paramount said that it had satisfied all closing conditions under the merger agreement and that the lawsuits filed by the state attorneys general and the Writers Guild of America were the only remaining barrier to closing the deal. Shares of Warner Bros. gained nearly 11% on Monday, while Paramount's fell 2.9%. "The combined company would have greater scale in content asset and production capabilities, across a range of content formats," Barrington Research Associates said in a report in August. "While the combined entity will have a substantial market share in parts of the entertainment ecosystem, it will remain a highly competitive market, particularly in streaming, where the combined company would also gain meaningful scale."

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US Treasury yields have reached a peak of 5.31%, the highest since 2002, and European bond markets have fallen to multi-decade lows. Despite this global bond market turmoil, equities remain unfazed: the S&P 500 is approaching its historical high, with all of the “Magnificent Seven” tech stocks advancing, and the STOXX 600 index in Europe touched a new intraday record. Earnings growth, rather than valuation expansion, has become the core support for equities, while the ongoing wave of AI capital expenditure continues to attract funds. However, Ray Dalio has warned that the US debt cycle is nearing its limit, raising questions about how much further this divergence between stocks and bonds can continue.

华尔街见闻•2026/10/06 09:06

Who will win? A bond storm sweeps through the US, Europe, and Japan, while global stock markets approach record highs

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智通财经•2026/10/06 09:01

BUZZ - Broker View: C.H. Robinson spends $5.8 billion to acquire RXO, putting the "bigger is better" argument to the test

October 6 - Freight forwarding company C.H. Robinson Worldwide (CHRW.O) announced on Monday that it will acquire the smaller rival transportation brokerage company RXO (RXO.N) for $5.8 billion, marking the largest deal in its history. The acquisition aims to expand its market coverage in North American trucking brokerage and strengthen its "last-mile" delivery capabilities. RXO shares dropped nearly 2.5% pre-market, while C.H. Robinson traded flat amid light volume. Among analysts, 18 rate RXO as "hold", while 24 give CHRW an average "buy" rating. No risk, no freight. JPMorgan sees the share price drop triggered by the deal as an opportunity for investors who can remain patient and withstand future claims and execution uncertainties. TD Cowen stated surprise at the deal, citing legal liability concerns, RXO’s debt levels, customer overlap, and the timing of the transaction amid ongoing legal challenges within the freight brokerage sector. Benchmark acknowledged that while the deal increases Robinson's exposure to freight brokerage risk, legal liability, and debt—potentially diluting shareholder equity—the market is overlooking the significant earnings and cost-saving opportunities it creates. Baird said the acquisition creates value through cost synergies, expands customer and carrier coverage, lessens the impact of any single legal claim, and strengthens Robinson’s market position as large shippers shift freight business away from smaller brokers. (For the convenience of non-native English speakers, Reuters provides automated translations of its reports in several languages. As automated translations may contain errors or lack the required context, Reuters does not guarantee their accuracy and offers them solely for readers’ convenience. Reuters assumes no responsibility for any damage or loss caused by the use of the automated translation feature.)

路透社•2026/10/06 09:00