Paramount Skydance's nearly $111 billion acquisition of Warner Bros. Discovery cleared its final legal obstacle on October 1, 2026, when a federal judge approved a settlement with 12 states, with the deal expected to close October 6. The approval comes attached to a detailed set of theatrical release commitments the combined company must now meet.
Strict quotas on theatrical releases
Under the settlement, the merged studio must release at least 30 theatrical films annually for its first two years, rising to 32 films in years three through five. Of those, 20 to 21 must be wide releases playing on 2,000 or more screens, and at least four must be independent films. Every title is required to get a 45-day exclusive theatrical run before becoming available to stream. The company is also required to spend at least $300 million more annually on U.S. production than it did in 2025, or $1.5 billion over five years.
A real financial penalty, and Miramax on the line
Falling short carries real cost: a $30 million penalty for every film that misses the annual quota, split 50% to union health and retirement funds for the WGA, IATSE, DGA and Teamsters, 40% to the Motion Picture & Television Fund, and 10% toward antitrust enforcement. The highest-stakes consequence is reserved for repeated shortfalls: if the company fails to meet its quotas after a six-month cure period, it must divest its entire ownership stake in Miramax, with that deadline potentially stretching to mid-2029 depending on when the shortfall occurs. The settlement drew criticism from some filmmakers who argued its enforcement mechanisms don't go far enough, though the judge overseeing the case described the agreement as "fair, reasonable, and good faith."