California Attorney General Rob Bonta announced a settlement between Paramount and 12 state attorneys general over the proposed $111 billion merger with Warner Bros. Discovery. The agreement is intended to address concerns about the merger’s impact on cinema, US film production and the independence of major news organisations.

Under the deal, Paramount must release at least 30 films in cinemas each year or face financial penalties, and will spend an additional $1.5 billion on film production over five years, with a larger share made in the United States. It will also create an independent board of journalists to oversee CNN and CBS News newsrooms. The settlement follows strained negotiations, legal action launched in July, disagreements among the states involved and pressure from an October 1 deadline carrying a $7 million daily fee for WBD shareholders.