Paramount Skydance (PSKY) has discussed a potential $1.5 billion investment in California entertainment production as part of its effort to win the state's approval for its acquisition of Warner Bros. Discovery (WBD), The Wall Street Journal reported over the weekend, citing people familiar with the discussions.

Executives at Paramount were in advanced talks over the weekend with state attorneys general from a coalition of states that sued to block the $81 billion merger, negotiating a possible settlement, the Journal reported.

As part of the talks, Paramount and California's attorney general also discussed commitments to remain in the state, and potentially divest certain cable channels, the report said.

Paramount and Warner Bros. did not immediately reply to MT Newswires' requests for comment.

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