Paramount reached an agreement on Monday to resolve an antitrust lawsuit delaying its $111 billion acquisition of Warner Bros. Discovery, eliminating the last significant barrier to creating a major entertainment colossus. A group of states, led by California Attorney General Rob Bonta, sued Paramount in July, arguing the deal would concentrate too much power over cable TV and blockbuster films.

After weeks of negotiations, Paramount agreed to several concessions to complete the transaction. The entertainment giant committed to establishing a board of journalists to ensure the editorial independence of CNN and CBS News. The company also pledged to distribute 30 movies in theaters annually and spend an additional $1.5 billion on film production over the next five years.

A completion of the blockbuster deal would create one of the largest entertainment companies in the world, pairing Paramount’s movie studio with Warner Bros., known for films like "Superman" and "Sinners." The combined entity would own Paramount+ and HBO Max and control both CNN and CBS News. David Ellison, Paramount’s chief executive, backed by his father Larry Ellison’s fortune, would become one of the most powerful figures in entertainment. The Ellison family’s ties to President Trump have made Democrats and CNN journalists wary of the deal.

A court still needs to approve the formalized consent decree. Paramount previously planned to close by the end of September and agreed to pay $7 million a day in fees if delayed past Oct. 1.