Paramount clears the last major hurdle to buying Warner Bros. Discovery by settling the lawsuit brought by 12 states

Paramount Skydance is set to acquire Warner Bros.

Discovery under CEO David Ellison.

Eric Thayer/Getty Images; Gilbert Flores/Variety via Getty Images; Mario Tama/Getty Images Paramount Skydance settled an antitrust lawsuit that was holding up its merger with Warner Bros.

Discovery.

Twelve states had sued to stop Paramount's WBD deal.

Buying WBD would make David Ellison's company a Hollywood giant.

David Ellison's Paramount Skydance has cleared the last major hurdle to closing its $110 billion merger with Warner Bros.

Discovery.

Paramount has settled the lawsuit brought by 12 states , California's Attorney General Rob Bonta announced on Monday.

David Ellison has cleared the last major obstacle to taking over WBD and forming a media giant.

Gilbert Flores/Variety via Getty Images Buying WBD will create the Hollywood behemoth that Ellison, Paramount's CEO, believes will have the size and strength to compete with giants like Netflix and Disney.

Ellison's Paramount will soon control the Warner Bros. studio, HBO, HBO Max, and TV networks CNN, TBS, and HGTV.

The 114-year-old media company already owns the Paramount Pictures studio, CBS, streaming services Paramount+ and Pluto TV, and cable networks like Comedy Central.

In February, Paramount agreed to buy WBD for $31 per share.