Exclusive Report - Sources Say Paramount in Talks with States Over CNN Oversight and Film Release Commitments

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Jody Godoy

Reuters, September 18 - According to sources familiar with the matter, Paramount PSKY.O and the states attempting to block its acquisition of Warner Bros. WBD.O are discussing terms that include independent content oversight for CNN and commitments regarding the number of theatrical releases.

The sources said a settlement could be reached as early as this weekend or on Monday.

The lawsuit, brought by California and 11 other states, represents the final obstacle to Paramount's bid to become a major competitor to Netflix NFLX.O and Disney DIS.N. Reaching a settlement this week could help Paramount avoid paying millions of dollars in fees to Warner Bros. shareholders.

Lawmakers have previously criticized Paramount CEO David Ellison for manipulating coverage at the company's CBS News division to favor President Donald Trump. Critics are concerned about how he would manage CNN if it comes under Warner's ownership.

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