India, Sept. 22 -- Twelve states and Hollywood's Writers Guild of America have agreed to settle lawsuits challenging Paramount's proposed USD 81 billion acquisition of Warner Bros Discovery, removing a major legal hurdle to the blockbuster merger.

The settlement, announced Monday by California Attorney General Rob Bonta, includes new commitments from Skydance-owned Paramount on domestic film production, support for workers affected by the merger and safeguards for the editorial independence of its news operations.

The agreement still requires final approval from a judge.

The proposed combination would bring together two of Hollywood's remaining "big five" studios, along with major television networks including CBS and CNN, streaming se...