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Paramount has reached a settlement with a group of US states that clears the way for its takeover of Warner Bros. Discovery, US media reported Monday, creating a Hollywood empire spanning television, news and cinema.

Paramount, which is run by David Ellison, whose ultra-wealthy family has ties to US President Donald Trump, won a bidding war in February for control of a stable of assets, including Warner Bros. Pictures, CNN and the HBO Max streaming service.

The Trump administration approved the deal, one of the largest media mergers in years, in June without demanding a change to its business, before 12 US states sued to block the transaction.

Paramount beat out Netflix in a high-stakes bidding war to acquire Warner Bros., with financing that reportedly includes about $24 billion in equity from sovereign wealth funds of Saudi Arabia, Qatar and Abu Dhabi.