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California Atty. General Rob Bonta and Paramount Skydance Chief Executive David Ellison have reached an agreement to end the state’s antitrust fight, paving the way for Ellison to complete his $111-billion purchase of Warner Bros. Discovery, said a person familiar with the matter.

The two sides have agreed to resolve antitrust claims that Bonta and 11 other state attorneys general brought in late July, said the source, who was not authorized to comment publicly on the settlement.

As part of the deal, Paramount agreed to pay a penalty if the company fails to make good on a promise to distribute 30 films per year in theaters and to spend $1.5 billion on film production in Hollywood over the next five years, said the source who was not authorized to comment.

Representatives of Paramount and Bonta did not respond to a request for comment.

A federal judge must approve the agreement. Paramount would then be poised to quickly finalize its purchase of Warner Bros. Discovery — a blockbuster combination that will reshape Hollywood by collapsing two historic film studios with rights to Batman, Harry Potter, “Top Gun,” and Bugs Bunny and by combining the HBO Max and Paramount+ streaming services.

In addition to CBS, Paramount would own dozens of cable television channels, including CNN, TBS, HGTV, Food Network and Comedy Central.

The road to a resolution was fraught. Bonta abruptly canceled a negotiation session with Paramount in late August after potential deal terms leaked. Then, after talks restarted and the settlement began taking shape, several powerful Bonta allies, including New York Atty. Gen. Letitia James and Connecticut Atty. Gen. William Tong, signaled their displeasure with proposed deal terms.

They felt the deal points didn’t go far enough to mitigate the potential clout Paramount would wield over the film and television industries if it was allowed to swallow its larger industry rival, according to three people familiar with the matter but not authorized to comment.

Ellison’s goal had long been to complete the Warner takeover by the end of September — before midterm Congressional elections and prior to a key deadline for Paramount to increase its payout to Warner Bros. Discovery shareholders. Ellison received a boost from California Gov. Gavin Newsom, Los Angeles Mayor Karen Bass and Xavier Becerra, the Democratic nominee for California governor, who pressed Bonta to end the dispute rather than take the case to trial in Oakland in March.

Newsom said he took “seriously” Paramount’s threat to leave the state. He advocated for a settlement behind the scenes, according to two people close to the matter who were not authorized to comment.

State Attorney General Rob Bonta in 2025. (Genaro Molina/Los Angeles Times)

(Genaro Molina/Los Angeles Times)

Ellison was highly motivated to strike a deal because his company’s expenses will soon accelerate. Beginning Oct. 1, Paramount is on the hook to pay Warner investors a “ticking fee” of 25 cents per quarter, per share until the deal closed. That obligation is expected to add $7 million a day to the cost of the $31 a share that Paramount agreed to pay Warner shareholders when it won the bidding war back in February.

Paramount’s takeover will be heavily leveraged. The company’s bankers have lined up nearly $80 billion in debt to finance the merger. Ellison’s father, billionaire Larry Ellison, late last year agreed to backstop the $47-billion in equity needed to complete the acquisition. Royal families from Saudi Arabia, Qatar and Abu Dhabi have agreed to chip in $24 billion for an equity stake by assuming some of Ellison’s financial commitments.

Late last week, the Federal Communications Commission approved Paramount’s request to allow the foreign investors to own nearly 50% of the merged company. The Ellison family, however, will retain its voting control.

Paramount has promised Wall Street that it would make more than $6 billion in cost cuts. A recent Los Angeles County economic report predicted the merger could lead to an estimated 4,500 workers in the Los Angeles region losing their jobs as Ellison works to combine the two companies.

The truce comes after Paramount received clearances from regulators around the world, including the European Commission, Canada and the U.S. Justice Department.

But despite those approvals, Paramount spent weeks over the summer wrangling with Bonta and applying political pressure. Ellison threatened to move his studio from its historic Melrose Avenue address to Texas or Tennessee.

Larry Ellison separately announced plans to switch the headquarters of his software behemoth Oracle to Nashville from Austin, Texas (after Oracle relocated from Silicon Valley six years ago).

Paramount also enlisted major Hollywood unions, the Directors Guild of America and the International Alliance of Theatrical Stage Employees, and prominent cinema chains to drop their opposition to the deal.

Bonta’s suit had leaned heavily into potential harms to theatrical distribution and lawyers for the states had been banking on theater executives’ testimony at trial.

The parties also were facing a key court hearing Thursday. Paramount was poised to ask U.S. District Judge Araceli Martínez-Olguín in Oakland to make the states and the Writers Guild of America post a $1.88-billion bond that would cover some of Paramount’s delay-related deal costs should the company eventually prevail.

The states and the WGA, which also sued to block the merger, have balked at the request, which was designed by Paramount to create fissures within the coalition of states by raising doubts about the strength of their case.

Paramount’s high-profile lobbying campaign reached a crescendo in late August after Paramount called out activist-actor Mark Ruffalo, accusing him of resorting to “antisemitic tropes” to argue against the merger.

Prominent Jewish groups rushed to Paramount’s aid. Ruffalo, who frequently works with HBO, denied the allegation, saying he had a 1st Amendment right to speak against the deal as well as Oracle’s business ties to Israel. Numerous Jewish artists came to Ruffalo’s defense, saying his free speech rights were being squelched.

Bonta abruptly canceled a settlement conference, accusing Paramount of leaking confidential information.

“If you want to have an adult, legitimate, serious settlement discussion — no problem,” Bonta said during an Aug. 25 appearance in Los Angeles. “But if you want to play games, we’ve got better things to do.”

The states’ 37-page lawsuit, filed in the U.S. District Court for Northern California, claimed the Paramount-Warner combination would violate the U.S. Clayton Act, a century-old antitrust law to prevent mergers that weaken competition and raise costs for consumers.

The states, which also included Nevada, Colorado, Oregon, Washington, New Jersey and New Mexico, had argued the tie-up of two legacy movie studios would give Paramount-Warner too much marketshare in two categories — wide-release movies and potential blockbusters.

Paramount Skydance CEO David Ellison has pressed to get his blockbuster deal done before his company must make higher payouts to Warner Bros. Discovery shareholders and before the mid-term elections, which could change the makeup in Congress.

(Mark Schiefelbein / Associated Press)

The states also said Paramount-Warner would control nearly 30% of the cable television channel space with more than 50 networks.

Paramount has been facing a June 4 deadline to complete the deal — or owe Warner Bros. Discovery a $7-billion breakup fee. Paramount has already paid $2.8-billion to cover a termination fee paid to Netflix after the streamer withdrew from the auction in February.

California Gov. Gavin Newsom does not like being on Donald Trump’s side on any issue.

But when it comes to transgender girls and women in sports, particularly at the school level, the Democrat said he largely agrees with the Republican president. Newsom, one of his party’s leading White House prospects, believes it’s “deeply unfair” for people who are assigned male at birth to compete against girls.

“I don’t want to be on that side of it, but I’m being honest — I’d be lying to you if I said differently,” Newsom told the Associated Press as he was campaigning recently in South Carolina. “I haven’t been able to figure out how to make it fair from my perspective.”

Newsom is not alone.

While most Democratic officials remain steadfast supporters of the transgender community, an increasing number in red and blue states are distancing themselves from their party’s unflinching support for the transgender community’s policy priorities, such as allowing athletes to compete on teams that match their gender identity. The shift follows years of conservative attacks against Democrats on the divisive issue, which affects a relatively small number of transgender people and their families, but has emerged as one of Republicans’ most potent political weapons in the Trump era.

Soul searching over transgender issues is one facet of a sprawling identity crisis that Democrats are confronting during the midterms and before the next presidential election. Although they risk a backlash from their progressive base, there is also a sense in some corners that the party must evolve on an issue where the overwhelming majority of voters — even many Democrats — agree with Trump.

The issue was a central theme for Trump and his Republican allies on the main stage at their midterm convention in Dallas last week, where the president said he hoped Democrats would continue to stand up for transgender girls and women who want to compete in girls’ and women’s sports.

“I’m petrified that they’ll change,” he said. “That will really hurt us.”

Republicans are already replaying some of the same political attacks that they used against Kamala Harris in the presidential campaign two years ago, when they said she’s “for they/them, not you.” On Friday, they released a new advertisement targeting James Talarico, the Democratic nominee for Senate in Texas, with the same phrase.

Democrats confront difficult political terrain

A political group backed by billionaire Trump ally Elon Musk has begun running digital ads targeting Democrats in key Senate races in Texas, Ohio and Alaska, accusing them of allowing men to compete in women’s sports.

In Texas’ pivotal Senate contest, the new ad from Musk’s America PAC opens with a video clip of Talarico saying that “God is nonbinary.”

Talarico began to distance himself from those positions months ago. He went further in a Fox News interview last week, saying he would vote in favor of a national ban for gender-affirming surgeries for transgender minors, which are rare.

“I’ve missed the mark on some of my past statements. I will be the first to admit it,” Talarico said in an interview near the Republican convention site. “I think the reason that politicians in that convention center across the street want to talk about six sexes is because they don’t want to talk about $6 diesel.”

In Iowa, State Auditor Rob Sand, the Democratic Party’s nominee for governor, has spoken out against transgender athletes competing in women’s sports as a matter of fairness. Ohio Democratic gubernatorial nominee Amy Acton has taken a similar position, although she has drawn criticism from the left for adopting Trump’s language after saying she opposed “boys playing in girls’ sports.”

And in deep-blue Massachusetts, transgender rights became a defining campaign issue during the state’s recent Democratic U.S. Senate primary, illustrating the potential backlash that party members can face.

Sen. Ed Markey, 80, secured the nomination and later credited his win to not shying away from advocating for transgender rights. He used the issue to attack his Democratic opponent, Rep. Seth Moulton, who had said he wouldn’t want his daughters to play against transgender athletes.

Moulton apologized for his comments, which drew outrage from some progressives, but the damage was done.

While Moulton lost his primary, his position — not Markey’s — is in line with the majority of voters nationally.

A June poll from Quinnipiac University found that about 7 in 10 registered voters think that transgender women and girls should not be allowed to play on women’s and girls’ sports teams. About one-quarter think they should. Democrats are divided, with about half saying transgender women and girls should be allowed and about half saying they should not.

A Pew Research Center poll conducted last year found that just over half, 55%, of Democrats would be “not too” or “not at all” comfortable with athletes playing on teams that don’t match their sex at birth, while 21% said they were “somewhat” comfortable and only 23% said they were “extremely” or “very” comfortable with this.

There’s division among activists

Markey’s public commitment to transgender rights stood out because Democratic politicians are increasingly running away from the issue, said Tyler Hack, executive director of the Christopher Street Project, which is dedicated to electing supporters of transgender rights to federal office.

“The reality of being a transgender person in America in 2026 is that on election nights, while other folks are talking about who had a good night and who had a bad night, sometimes you are quietly wondering, ‘Am I going to be OK?’” Hack said.

At the same time, even transgender activists are divided over supporting Democrats who have positions that are unfriendly to transgender people.

Erin Reed, an advocate and independent journalist covering transgender issues, this month put out a guide flagging Democratic candidates who she accused of taking anti-transgender positions. She highlighted 15 states that have such Democrats, saying that she would not vote for the “worst offenders” even if it means a Republican wins.

She doesn’t want Democrats to see that “throwing transgender people under the bus is a winning strategy.”

“One seat can be won back,” Reed wrote. “A party cannot.”

Meanwhile, Hack would probably vote for a Democrat even if that candidate supports some policies the Christopher Street Project opposes, in hopes that the party can take control of Congress. However, those candidates shouldn’t expect the organization’s endorsement.

“While I hope many of them win, I think they can do it without our resources and without our support,” Hack said.

Laws are changing around the country

The political debate is evolving as transgender people increasingly become the target of conservative backlash through state laws and the Trump administration.

Sports participation has become one of the main fronts in a political battle over transgender rights, although most Republican-controlled states have also implemented policies that affect a bigger slice of the population. There are bans on some gender-affirming health care for transgender young people and rules against transgender people from using the bathrooms that match their gender identity in schools and occasionally other public places.

At least 25 states are now enforcing laws or policies banning transgender women and girls from competing in at least some women’s and girls’ sports and three others have adopted laws but have enforcement blocked by the courts.

Earlier this year, the U.S. Supreme Court upheld state laws barring transgender girls from school teams.

Transgender athletes make up a small portion of team rosters. NCAA president Charlie Baker testified in 2024 that he knew of fewer than 10 transgender college student-athletes out of more than 500,000 total.

The debate is a preview for 2028

The debate within the Democratic Party heading into the 2026 midterms offers a preview for those Democrats contemplating presidential bids in 2028.

Newsom, who is considered a frontrunner in the shadow primary, highlighted his long record of supporting LGBTQ+ priorities, including sanctioning same-sex marriage as the San Francisco mayor decades ago and later appointing the first trans judge in California history.

But in sports, he thinks it’s unfair to allow people assigned as males at birth to compete against girls.

“It’s a hard issue. I struggle with it,” Newsom said. “I think people know where my heart is, my soul is. I have a trans godson.”

Illinois Gov. JB Pritzker, another likely Democratic presidential contender, has taken the opposite position.

He has consistently criticized state-level bans and restrictions on transgender athletes, calling them “bullying” and a “setback for equality.” Following the recent Supreme Court ruling that upheld state bans on transgender athletes, Pritzker, whose cousin is transgender, reaffirmed his position on social media.

“There’s a place for you in Illinois,” he wrote.

In Pennsylvania, Democratic Gov. Josh Shapiro opposes bans on transgender athletes in school sports, which he’s called cruel and designed to discriminate. He argues that athletic participation and eligibility should not be dictated by politicians, but rather handled by local athletic organizations — a stance in line with several LGBTQ+ groups.

He’s also raised questions of fairness, however.

“Look, I think it’s a tough deal being born into the wrong body. And I don’t think these kids deserve to be persecuted and bullied by the president of the United States,” Shapiro told The Atlantic last year. “I also don’t think they deserve an unfair advantage on the playing field.” Research has been mixed on whether transgender women have advantages in sports, and it depends partly on whether they went through puberty as boys.

Former Transportation Secretary Pete Buttigieg, who is gay and a potential presidential contender, said on Fox earlier in the year that he takes people seriously on both sides of the debate “whether you’re talking about parents who are wondering what this means for fairness for their kids competing, or parents who want to make sure that their kids aren’t being discriminated against and get a chance to participate.”

“But I also have to tell you,” he added, “I would be surprised if this is a top three or even a top 10 voter issue in the midterms this year.” ___

Peoples and Mulvihill write for the Associated Press. AP writers Kimberlee Kruesi in Providence, R.I., and Amelia Thomson DeVeaux in Washington contributed to this report.

Former Dallas Cowboys quarterback Tony Romo says he is taking full responsibility for his ‘recent personal failure’ after entering a no-contest plea to a charge of operating a vehicle while intoxicated.

Romo was arrested July 23 in Wisconsin on suspicion of operating while intoxicated (OWI). He also received citations for having an open container of an alcoholic beverage in a moving vehicle and unsafe passing, but they were dismissed Tuesday morning by a Milwaukee County judge.

The same judge found Romo guilty of the OWI charge and took away his driving privileges for six months. Romo also must pay $834, and an ignition interlock device must be installed on any vehicle owned or operated by Romo or registered in his name for a minimum of one year.

In a statement posted to Instagram soon after, Romo indicated he is taking the situation seriously.

“This morning, I faced a recent personal failure by pleading no contest to a civil offense for OWI in Wisconsin. I own this completely,” Romo wrote.

“Multiple back surgeries ended my career earlier than I expected and left me with constant, debilitating pain. That pain led to a dependence on pain medication, and my efforts to get off those medications led to an over-reliance on alcohol.

“As I have taught my three young sons: when you fall short, you stand up and take full responsibility. That is an important first step. The harder and more important step is examining the path that brought you here and making the changes necessary to move forward.

“That path requires honesty.

“None of this is an excuse. These are my failures, and I take responsibility for them.”

Romo spent all 13 of his NFL seasons with the Cowboys and has been the lead NFL game analyst for CBS Sports since 2017. On July 31, the network placed Romo on indefinite leave and tapped J.J. Watt to fill in alongside play-by-play announcer Jim Nantz.

He said Tuesday that he is “working closely with a team of doctors to address my health and make the necessary changes” in his life.

“The past month has been difficult, but it has also been personally significant,” Romo wrote. “It has required me to confront and own my mistakes fully — to the Lord, to myself, to my family, and now to the public.”

Romo added: “As I turn my attention to my health, my family, and, in time, my return to CBS, I kindly ask for privacy during this period.”