David Ellison has secured a settlement with state attorneys general who sued to block the merger between Paramount and Warner Bros. Discovery, bringing an end to nearly a year of regulatory uncertainty. The settlement, which faced opposition from activist groups and high-profile figures such as actor Mark Ruffalo, addresses antitrust concerns raised by the authorities. The prolonged dispute had stalled development and spending across both companies, and its resolution has prompted celebration among Hollywood labour guilds, who suffered from the industry paralysis caused by the extended uncertainty.

The Writers Guild of America negotiated a separate settlement including a $17.5 million payment to its health fund and a five-year moratorium on writer layoffs at CBS News Broadcast, though the union maintained its opposition to the merger on broader industry grounds. The Directors Guild of America highlighted enforceable protections for theatrical film and television markets, whilst the Screen Actors Guild noted that the agreement addresses concerns regarding production levels and investment in U.S. productions. The settlement brings regulatory clarity to the sector following an extended period of reduced industry activity.