Paramount has agreed to settle an antitrust lawsuit brought by 12 states, clearing the last major obstacle blocking its $81 billion acquisition of Warner Bros. Discovery. The settlement was announced Monday, but it still requires approval from a judge.

The agreement would reshape the movie industry while placing several production, labor, and corporate conditions on Paramount. State attorneys general say those requirements will protect workers and guarantee more investment in domestic movie production.

Analysts remain concerned that the acquisition will reduce competition and eventually mean higher prices for consumers. Forrester Research Director Mike Proulx said consumers are focused less on theatrical releases and industry provisions than on how the deal could affect their wallets.

One of Paramount’s biggest commitments is a five year plan covering domestic movie production. The company agreed to spend $1.5 billion over five years, equal to $300 million annually, beyond what it spent filming domestically in 2025.

According to the state attorneys general, only about 5% of Paramount’s production currently takes place in the United States. The settlement therefore locks in additional domestic spending, though the provided terms do not say how much that commitment will change Paramount’s overall domestic production share.

Paramount also agreed to create a five year, $25 million fund for purchasing independent films. The company must release at least four independent films each year under the settlement.

The agreement includes specific annual production requirements for the broader movie slate. Paramount must produce 30 films annually during the first two years, followed by 32 films annually during the next three years.

Those requirements align with plans previously described by Paramount Chair and CEO David Ellison. He has said the combined company would expand its movie slate to more than 30 films per year.

The production promises come with penalties if Paramount fails to meet the required numbers. The company could be forced to sell Miramax Studios and pay $30 million to health care and retirement trust funds connected to worker unions.

The settlement also addresses a looming round of corporate job reductions. Paramount has said it would seek approximately $6 billion in savings through job cuts involving “duplicative operations” once the acquisition is completed.

To assist workers who lose their jobs, Paramount will establish a $47.5 million workforce fund for training and career development. The company also agreed to honor existing collective bargaining agreements and bargain in good faith with unions.

Paramount will not be required to sell its cable channels under the agreement. It must, however, conduct negotiations involving basic cable channels under Paramount and Warner Bros. separately for five years.

Failure to follow that requirement could result in Paramount having to sell some channels. That provision is intended to keep negotiations separate even as the two companies operate under the same combined corporate structure.

The settlement also reaches into the news divisions controlled by the companies. It calls for the creation of a board tasked with ensuring that CNN, which Warner owns, and CBS, which Paramount owns, maintain editorial independence.

Taken together, the terms provide production quotas, domestic investment promises, labor protections, and potential penalties. Yet the underlying consumer concern remains stubbornly simple: A deal that combines major entertainment assets could leave audiences facing less competition and higher prices, no matter how polished the settlement looks on paper.