Paramount Skydance and Warner Bros. Discovery merger: Investors react after last major hurdle clears

Shares in both Paramount Skydance and Warner Bros. Discovery have received a significant boost over the past 24 hours after multiple states agreed to settle a lawsuit seeking to block the merger between the two Hollywood giants. The now-settled suit was the last major hurdle to Paramount’s takeover of Warner Bros. Discovery, which is now on track to close by the end of the month. Here’s what you need to know. What’s happened? Yesterday, California Attorney General Rob Bonta announced that his office, along with the AGs of eleven other states, had agreed to settle their antitrust lawsuit seeking to block the merger between Paramount Skydance and Warner Bros. Discovery (WBD). As Fast Company reported in July, the lawsuit was brought by 12 states over fears that the merger would lead to fewer films produced each year, less competition, and more control by mega corporations over the types of content and editorial coverage that Americans see—particularly on cable TV. The lawsuit, led by California Attorney General Rob Bonta, sought to block the merger on these and other grounds. Now, however, Paramount, Warner Bros. Discovery, and the 12 states involved have settled the lawsuit. Paramo…