California Attorney General Rob Bonta and eleven other states have reached a settlement clearing the way for Paramount to merge with Warner Brothers.
The states had sued to block the $111-billion merger, arguing it would raise prices and cut domestic movie production. Under the settlement, Paramount agreed to make more films in the U.S. spending at least one-point-five billion more on U.S. production, and fund job training for workers displaced by the deal.
Bonta says it's not an endorsement of the merger.
"I don't think these two companies should merge," said Bonta, "but that's not something that we are focused on with our resolution here."
The settlement does not force Paramount to sell off any major assets, something Bonta had earlier pushed for. Several Hollywood unions back it, while the Writers Guild and anti-merger groups say it falls short. A judge still has to approve the settlement.