A coalition of states has settled its challenge to the proposed $81 billion Paramount-Warner transaction, removing one of the most significant remaining legal threats to the deal. State officials, including Connecticut Attorney General William Tong and California officials, framed the resolution as a way to protect jobs and preserve editorial independence at major news organizations tied to the companies, even after the U.S. Justice Department chose not to step in.

The settlement is notable because it underscores the increasingly important role of state attorneys general in merger enforcement, particularly in politically sensitive industries such as media.

A federal judge in the Eastern District of California has blocked Nexstar Media Group’s proposed acquisition of Tegna while antitrust litigation proceeds, handing opponents of the deal an important early win and underscoring how merger challenges can survive even after federal regulators decline to stop a transaction.

Judge Troy Nunley found that the challengers were likely to succeed, a significant conclusion at the preliminary injunction stage.