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Paramount-WBD Merger Is A Go As Judge Approves Legal Settlement
Deadline • • general
Key Points:
- A federal judge approved the September 21 settlement between Paramount and state Attorneys General, removing the final legal obstacle for Paramount's merger with Warner Bros. Discovery (WBD).
- The judge described the consent decree as a reasonable compromise that avoids the risks and expenses of a trial, despite some public dissatisfaction and opposition from critics.
- Paramount CEO David Ellison indicated the merger would formally close within about two weeks, with the company already marketing a $44 billion bond to fund the $110 billion acquisition.
- The settlement includes enforceable commitments over five years, such as a set number of theatrical releases and separate negotiations for Paramount and WBD cable networks, but no structural remedies like asset sales.
- Following the approval, Mattel CEO Ynon Kreiz was named Co-CEO of Paramount alongside Ellison, and Cindy Holland, chair of Paramount’s Direct-to-Consumer business, departed the company.
