California and Paramount Skydance have reportedly reached a settlement allowing the company to complete its $111 billion merger with Warner Bros. Discovery. The settlement drew condemnation from Democrats and media advocates.

"The Paramount/Warner Brothers merger seems facially illegal, and the state AG lawsuit challenging it is very strong," said Lina Khan, former FTC chair. "It's troubling to hear that the states may now settle for behavioral remedies... Behavioral remedies routinely fail."

Bloomberg reported the agreement with California and other states. The New York Times and Wall Street Journal confirmed. The combined company will have nearly $80 billion in debt.

Free Press co-CEO Jessica J. González criticized California Attorney General Rob Bonta: "We are disappointed that Attorney General Bonta went back on his promise to enforce the law." John Bergmayer of Public Knowledge said the settlement "does not address the central problem: the loss of competition."

The deal was initially opposed by Massachusetts, New York, Connecticut, and Minnesota, but they concluded the legal battle was not justifiable without California. They secured independent editorial boards for CBS and CNN and a financial penalty if Paramount fails to distribute 30 films per year in theaters. Bonta confirmed the settlement.