A federal judge approved a settlement between Paramount and a coalition of US states on Wednesday, removing a legal barrier to Paramount’s acquisition of Warner Bros. Discovery and forming a massive Hollywood conglomerate spanning television, news, and film.
California Judge Araceli Martinez-Olguin signed the consent decree, enforcing the concessions Paramount offered to resolve an antitrust challenge initiated by 12 states. These commitments will last for five years, with the court retaining enforcement authority.
Led by David Ellison, whose affluent family maintains connections to US President Donald Trump, Paramount outbid Netflix in February for control of a portfolio including Warner Bros. Pictures, CNN, and the HBO Max streaming platform.
On the same day, Ellison appointed Mattel CEO Ynon Kreiz as co-CEO of the merged entity once the deal closes.
Ellison will remain chairman and CEO, concentrating on strategy, creative direction, and technology, while Kreiz will manage daily operations and the integration of the two businesses, according to the company.
“Uniting Paramount and Warner Bros. Discovery to forge a next-generation global media company represents a transformational moment for our industry,” Ellison stated.
“With Ynon, I am securing a partner with robust leadership and the operational capacity this integration requires,” he added.
Kreiz, who has headed Mattel since 2018 and supervised its expansion into film with the 2023 hit “Barbie,” will join Paramount on October 5 and take a board seat upon closing.
The Trump administration greenlit the transaction, one of the largest media mergers in history, in June without requesting business alterations, prior to 12 US states suing to block it.
Deal financing reportedly involves approximately $24 billion in equity from the sovereign wealth funds of Saudi Arabia, Qatar, and Abu Dhabi.
David Ellison’s father, billionaire Oracle founder Larry Ellison, supplied substantial funding and a guarantee for the deal’s lenders.
Industry opponents argued the combined entity would cut jobs in an already strained Hollywood and decrease annual film output, while news outlets worried about CNN’s editorial independence.
The decree incorporates safeguards against these concerns, including a board dedicated to preserving CNN’s editorial independence.
The settlement was finalized by the parties on September 21 and awaited judicial approval.
This occurred shortly after Trump banned CNN, Politico, and MS NOW from the White House, a decision the outlets successfully challenged in court.
Paramount had threatened to relocate from California if state Attorney General Rob Bonta did not drop the lawsuit.
The decree obligates the merged studio to release 30 films in each of the first two years and 32 films annually for the subsequent three years.
(FRANCE 24 with AFP)
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