Paramount-WBD Merger Set to Close After Judge Approves Settlement With State AGs

Key Points:

• U.S. District Judge Araceli Martínez-Olguín approved Paramount’s settlement with 12 Democratic state attorneys general, clearing the final legal hurdle for Paramount’s $111 billion merger with Warner Bros. Discovery, set to close on October 6.
• The merger will combine major Hollywood studios, streaming platforms HBO Max and Paramount+, and TV networks including CBS, CNN, and MTV, uniting franchises like Harry Potter, Game of Thrones, and the DC Universe under one company.
• Paramount chief David Ellison will co-lead the merged entity with Ynon Kreiz, formerly Mattel’s CEO, while Warner Bros. Discovery CEO David Zaslav and other top executives are expected to depart with substantial severance packages.
• The settlement includes no divestitures but imposes conditions such as a five-year prohibition on selling studio lots in California, a $300 million annual U.S. film production investment, a minimum number of theatrical releases, and oversight by a news editorial independence board for CNN and CBS News.
• Despite objections from merger opponents and advocacy groups citing concerns over reduced competition and representation, the judge ruled the consent decree is a fair compromise that addresses alleged harms without permanently blocking the merger or requiring divestitures.