Paramount settles with California, other states over Warner Bros merger, Bloomberg News reports

A coalition of 12 state attorneys general, led by California's Rob Bonta, sued in July to block the merger, arguing it would reduce competition in theatrical film distribution and the licensing of basic cable channels.

A settlement will help Paramount avoid a $7 million daily fee it owes Warner Bros shareholders for each day the deal does not close past September 30.

Antitrust regulators in other jurisdictions globally, including the European Union and Britain, have already cleared the acquisition.

Shares of Warner Bros Discovery rose further after the Bloomberg report and were last up nearly 10%. Paramount pared some gains, and was last trading about 7% higher.

The Wall Street Journal reported on Sunday that Paramount and California's attorney general had discussed a range of concessions, including a $1.5 billion investment in production in the state, a commitment not to sell either studio lot, and potential penalties if Paramount fails to honor a pledge to produce 30 movies a year after the merger.