Key Points
- Paramount has agreed to maintain a free streaming service as part of a settlement with California and other states over its acquisition of Warner Bros Discovery.
- The agreement requires Paramount to continue offering a free streaming television service “like Pluto TV” and maintain its current service and quality.
- The condition was outlined Monday by California Attorney General Rob Bonta, whose office led the multi-state antitrust challenge.
Executives at Paramount have agreed to maintain a free streaming service as a condition of settling a multi-state antitrust lawsuit over its acquisition of Warner Bros Discovery (WBD), The Desk has learned.
The requirement is one of several conditions outlined by California Attorney General Rob Bonta in an e-mail to reporters on Monday, which effectively announced the end of the state’s participation in litigation against Paramount over its intention to merger with WBD.
In addition to customary conditions like installing an independent board for CBS News and CNN and commitments to maintain domestic TV and film production in California, the state secured an agreement that requires Paramount to continue offering a free streaming TV service “like Pluto TV” and “maintain its current service and quality,” the e-mail said.
Pluto TV was acquired by Paramount’s predecessor Viacom Networks in 2019. The streamer offers free access to content from Paramount’s TV and film library as well as shows and movies that are licensed from others, supported by short commercial ad breaks.
The settlement does not require Paramount to evolve its business model for Pluto TV or any other streaming service to remove advertising, and it doesn’t say Paramount has to offer Pluto TV forever — only that the company must maintain some kind of free streaming service with a comparable experience down the road.
WBD does not offer a similar free streaming service, but does produce free, ad-supported streaming linear channels, some of which are carried on Pluto TV. The agreement does not require WBD to launch its own free streaming platform to compete against Pluto TV or any other service owned by Paramount.
#BREAKING: Attorney General Rob Bonta's office has confirmed the settlement with Paramount. pic.twitter.com/MQ68CPleul
— Matthew Keys (@MatthewKeysLive) September 21, 2026
In addition to the streaming requirement, Paramount has also agreed to negotiate carriage of its broadcast and cable networks separate from those operated by WBD for at least the next five years. That stipulation will cover at least one renewal period, according to a source familiar with the matter. Paramount and WBD typically negotiate carriage of their channels with cable, satellite and streaming platforms every three years, except when a service does not already offer its channels.
California and a coalition of other progressive-backed states sued Paramount over its $111 billion acquisition of WBD earlier this summer. The lawsuit complained that Paramount would exert too much control over the entertainment, streaming and news industry by creating a super-company that suppressed competition in the industry.
Paramount said its interest in WBD was intended to help it better compete against tech-based entertainment companies like Netflix, Amazon’s Prime and YouTube, and that the industry already has other competitive firms like Disney, NBC Universal, Sony Pictures and Lionsgate.
The states faced intense pressure from some entertainment unions who complained that a protracted legal battle with Paramount and WBD could prompt one or both companies to move their business out of California. Numerous reports over the past month indicate Paramount executives were scouting for office space in tax-friendly states like Texas, Georgia and Tennessee.
The settlement reached on Monday requires Paramount and WBD to maintain their film and TV production business in California and commit to releasing at least 30 movies in theaters over the course of two years. That amount winnows down to 21 wide releases out of 32 overall films after two years.
The merger is expected to be complete in October. Earlier this month, Paramount cleared a procedural hurdle at the Federal Communications Commission (FCC) that allows it to sidestep a rule regarding foreign ownership in broadcast TV stations. Paramount holds TV licenses for more than two dozen stations affiliated with CBS and others.
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- Paramount deemed too large to sue: States expected to settle lawsuit over WBD merger
- FCC’s Media Bureau approves foreign bankrolling of Paramount-WBD merger
- Paramount, Comcast may wind down SkyShowtime joint venture
- DOJ green-lights Paramount-Warner Bros merger; California AG says deal not done (June 2026)
- Pluto TV to relaunch on Paramount Plus platform this summer (May 2026)
- Paramount appears willing to keep cable networks for now (September 2025)
