A federal judge in California approved a settlement on Wednesday, September 30, that removes a major legal barrier to Paramount Skydance’s planned merger with Warner Bros. Discovery. The companies said they expect to close the transaction on October 6, subject to customary conditions. The ruling follows a lawsuit by 12 state attorneys general who argued that combining the entertainment groups could harm competition.
US District Judge Araceli Martínez-Olguín signed the agreement resolving the states’ antitrust case, according to the Associated Press and the Los Angeles Times. The states, led by California Attorney General Rob Bonta, had sought to stop the deal in July over concerns about choices for moviegoers, television customers and workers. The approval clears that state challenge, but the merger has not yet closed.
Under the settlement described by California’s attorney general, the combined company must distribute at least 30 films in theaters annually for the first two years and 32 annually for the following three. It also committed at least $1.5 billion in additional domestic film production over five years. The state said failure to meet the film targets would trigger a Miramax divestiture and a payment for each missed film.
The agreement also provides a $47.5 million fund over five years for training and career development for workers affected by the merger, according to the California attorney general. It places conditions on cable negotiations intended to protect competition. Critics of the deal say the commitments are insufficient, while the states say the enforceable terms address the harms alleged in their case.
Paramount separately announced that Ynon Kreiz, the chief executive of Mattel, will become co-chief executive of the combined company alongside David Ellison when the merger closes. Its statement says Kreiz will start at Paramount on October 5 and oversee daily operations and integration, while Ellison will focus on strategy and creative direction. The appointment remains tied to completion of the transaction.
The deal would put Paramount Pictures, CBS and Paramount+ in the same group as Warner Bros. Pictures, HBO Max and CNN, making its effect on film output and distribution closely watched across the industry. Paramount and Warner Bros. Discovery specified October 6 as an expected closing date, not a completed acquisition. Their announcement says customary closing conditions still apply.
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