The settlement clearing the way for Paramount Skydance's $110 billion acquisition of Warner Bros. Discovery has sparked widespread criticism from antitrust advocates, industry experts and political leaders, who argue that California failed to secure meaningful protections for workers, competition and consumers.

The agreement, negotiated by California Attorney General Rob Bonta, ends the state's legal challenge seeking to block the merger. However, critics contend that the final settlement includes only limited concessions from the media giant and does little to address growing market concentration in Hollywood.

Opponents of the deal warn that combining two of the entertainment industry's largest companies could reduce competition, limit opportunities for creative professionals and give the merged company greater influence over film, television and streaming markets.

Former Federal Trade Commission (FTC) Commissioner Alvaro Bedoya said the merger could lead to job losses, fewer business opportunities for smaller companies and higher costs for consumers.

Sen. Elizabeth Warren also criticized the agreement, saying the newly combined company should continue to face antitrust scrutiny in the future. She argued that the merger further concentrates power within the U.S. media industry.

Speaking at a news conference, Attorney General Rob Bonta emphasized that the settlement should not be interpreted as an endorsement of the merger, acknowledging that transactions of this size can reduce competition. He said, however, that the agreement includes measures intended to encourage more film and television production in California.

Paramount CEO David Ellison defended the transaction, saying the merger will strengthen the company's ability to compete while benefiting consumers, employees and investors.

Although Bonta had previously advocated for structural remedies—such as requiring companies to sell assets to reduce market concentration—the final settlement does not require Paramount to divest any television networks, studios or major entertainment properties.

The combined company will control some of Hollywood's most valuable franchises, including Top Gun, Mission: Impossible and Star Trek from Paramount, along with Batman, Harry Potter and The Lord of the Rings from Warner Bros.

Under the settlement, Paramount agreed to establish independent editorial boards for CNN and CBS, maintain a commitment to release 30 theatrical films annually, with a $30 million penalty for each film below that target, and negotiate separately with television distributors. However, those commitments are temporary and are scheduled to expire within three to five years.

Many entertainment industry groups remain concerned that continued consolidation will reduce the number of film and television productions, further impacting employment in Hollywood, which has already experienced job losses as productions increasingly move to lower-cost locations.

John Bergmayer, legal director at the nonprofit organization Public Knowledge, said the merger will leave fewer studios competing for scripts, talent and creative projects, potentially resulting in higher prices for consumers and fewer opportunities for writers and other entertainment professionals.

Despite the criticism, California's effort to block the merger also faced opposition. States including Iowa and Montanaasked the U.S. Supreme Court to intervene in support of allowing the acquisition to proceed.

Meanwhile, Cinema United, a trade association representing movie theater owners, supported efforts to reach a negotiated settlement, arguing that resolving the legal dispute would reduce uncertainty for the entertainment industry. Its members include major theater chains such as AMC, Regal and Cinemark, representing approximately 30,000 movie screens across the United States.