Paramount, Warner Bros gain after WSJ report says merger settlement talks advance

Shares of media giants Paramount Skydance PSKY.O and Warner Bros Discovery WBD.O rose after the Wall Street Journal reported that PSKY is in advanced settlement talks with California's attorney general to clear their proposed merger.

PSKY was up 6.3% at $10.9, while WBD gained 8.1% to $30 in premarket trading.

The WSJ reported that concessions under discussion include a $1.5 billion investment in production in California and a commitment not to sell either studio lot.

Other measures being considered include selling some cable channels and creating a board to help ensure CNN's editorial independence, the report added.

As of the last close, PSKY stock was down 23.8% year to date, while WBD had fallen 3.5%.