India, Sept. 22 -- Paramount Skydance settled lawsuits with a dozen US states on Monday, removing the last legal obstacle to its $110 billion merger with Warner Bros Discovery and setting up the creation of Hollywood's largest entertainment company.

Paramount and Warner Bros are Hollywood's two biggest studios. Together, they will control both companies, two major streaming services, and dozens of television channels spanning CBS to HBO. Both studios are based in California, and the combined entity's economic impact on the state would be among the largest ever - a scale that had worried legislators over what might happen if it chose to move elsewhere.

Twelve state attorneys general, alongside the Writers Guild trade union, sued to stop ...