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Paramount has reached a settlement with California and other states that clears the way for its $81bn merger with Warner Bros. Discovery after chief executive David Ellison offered to invest at least an additional $1.5bn in U.S. production over five years. The agreement follows months of negotiations and an antitrust lawsuit led by California Attorney General Rob Bonta, with Paramount also facing potential payments of $650m per quarter to Warner shareholders beginning October 1st if the transaction remained unfinished. The settlement includes commitments related to domestic production, entertainment worker benefits, editorial independence, and film releases, as well as potential asset divestitures if Paramount fails to meet certain promises. Paramount had also considered relocating from California, while Gov. Gavin Newsom raised concerns about the economic consequences of losing the company and acted at times as an unofficial mediator. Paramount expects to close the merger in about two weeks, with the combined company remaining headquartered in Los Angeles.
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