Paramount agrees invest $1.5 billion in domestic movies and create a board for editorial independence at CNN, CBS as part of deal for Warner Bros.

Movie studio Paramount on Monday agreed to settle an antitrust lawsuit filed by 12 states, the last big obstacle blocking the company’s $81 billion acquisition of Warner Bros.

Discovery in a deal that would transform the movie industry landscape.

In the settlement, which still needs to be approved by a judge, Paramount agreed to terms including a five-year movie production plan and to invest $1.5 billion in domestic movies.

State attorneys general say the settlement guarantees investment in domestic movie production and provides worker protection.

But analysts say the deal is still likely to lead to less competition in the industry — and higher prices for consumers.

“Where I’m looking at this is through the consumer’s point of view and resoundingly consumers are concerned about price hikes and they are preparing for price hikes,” said Forrester research director Mike Proulx.

“They care less about the theatrical releases and some of the other industry terms.

What they care about is how this is going to hit their wallets.” Here’s a closer look at the biggest terms Paramount agreed to in the settlement: Paramount says it will invest in domestic films and independent films Paramount said it will spend $1.5 billion over five years, or $300 million a year — on top of what it spent in 2025 on filming domestically.

According to the state attorneys general, currently only about 5% of Paramount’s production is in the U.S.

Paramount also said it would create a five-year, $25 million fund for buying independent films.

The settlement lays out a five-year film production schedule The movie studio agreed to make 30 films a year in the first two years and 32 films a year in the following three years.

It also said it will release at least four independent films each year.

That dovetails with plans Paramount chairman and CEO David Ellison has previously laid out to grow the combined company’s movie slate to more than 30 movies a year.

But the agreement includes penalties: If Paramount doesn’t produce the required amount, the company will be forced to sell Miramax Studios and pay $30 million to health care and retirement trust funds associated with worker unions.