The news: Paramount Skydance has reached a settlement with California and four other state attorneys general that sought to block its pending acquisition of Warner Bros Discovery.

• The terms require Paramount to distribute at least 30 films annually in theaters for the first two years and 32 annually in the next three, or pay a $30 million fine per film missed.
• Paramount will be required to sell its stake in studio Miramax if it does not meet its distribution target.
• The states also required independent editorial boards for CNN and CBS as part of the deal’s terms.

The agreement means Paramount will not have to pay late fees of $7 million daily to WBD that would have begun on October 1.

Why it matters: Crossing this hurdle brings Paramount one step closer to forming one of the largest media and entertainment conglomerates globally. The combined company would significantly concentrate premium content and ad inventory among a smaller group of media giants.

Together, Paramount and WBD would also own:

• 9 of the largest 20 US cable networks, adding to their share of traditional TV audiences.
• 2 of the five highest-grossing movie studios.
• 3 of the top 10 subscription streaming services, notably Paramount+, HBO Max, and Pluto TV.