Paramount has settled legal challenges from 12 US states to its $110 billion merger with Warner Bros. Discovery, with new conditions requiring the combined studio to significantly increase film output. The settlement aims to protect employment and domestic production in the entertainment industry, though the terms only apply for five years and contain provisions that critics argue may not achieve their intended goals.

The settlement requires the merged company to release either 30 films annually in its first two years or pay $30 million per film into union healthcare and retirement funds; this increases to 32 films annually for years three to five. Currently, Paramount releases approximately 15 films per year whilst WBD releases 17. However, the settlement permits the company to meet these quotas by acquiring and distributing films from other studios rather than producing them in-house, and only mandates that 20 per cent of releases carry budgets exceeding $50 million. If the company fails to meet these targets, it must divest its 49 per cent stake in Miramax to a competitor.