On September 21, Warner Bros. Discovery rose 6.89% in regular trading, trading at $29.855/share, with turnover of $432 million. The rally was driven by reports that Paramount Skydance is actively pursuing settlement negotiations to resolve a lawsuit blocking its approximately $110 billion acquisition of Warner Bros. Discovery.

According to multiple sources familiar with the talks, both parties have entered the late stages of settlement discussions, with Paramount seeking to avoid costly penalty fees triggered by deal delays. Paramount has also discussed a potential $1.5 billion investment in California entertainment production to secure the state attorney general's approval. Additional concessions under negotiation include independent editorial oversight for CNN and commitments on theatrical film release volumes. Paramount has also explored divesting certain cable channels, including Comedy Central, to satisfy regulatory concerns.

Critically, Paramount Skydance has already cleared all regulatory hurdles required under the merger agreement, obtaining approvals in nearly 70 countries and receiving FCC authorization for foreign ownership exceeding 25%. The state-led antitrust lawsuit remains the sole obstacle to completing a deal that would create a media conglomerate controlling two major studios, CBS News, CNN, HBO Max, and Paramount+.

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