Judge Approves Paramount-Warner Bros. Merger Settlement

A federal judge has approved Paramount's settlement with 12 states, clearing the way for its $110 billion merger with Warner Bros.

Discovery to close on October 6. U.S. District Judge Araceli Martínez-Olguín ruled that the proposed consent decree was a fair, reasonable, and good faith approach to address the competitive harms alleged in the states' antitrust lawsuit. Paramount, acquired by Skydance last year, had called the antitrust challenge the final hurdle. Under the settlement, the combined company must release at least 30 films annually in U.S. theaters for five years and spend an additional $300 million per year on U.S. production.

Failure to meet the film quota could force the sale of Miramax. The company must also negotiate basic cable deals separately for its channels and establish an editorial-independence board for CBS News and CNN. Ynon Kreiz, current CEO of Mattel, will join as co-CEO alongside David Ellison when the deal closes, overseeing day-to-day operations and integration.

The merger brings together two major Hollywood studios, including assets like HBO Max, CNN, CBS, and the Paramount+ streaming service. The settlement also resolves an antitrust lawsuit from the Writers Guild of America, requiring a $17.5 million payment to the guild's health fund and maintenance of WGA staffing levels at CBS News for five years.