Paramount wins court approval to complete $110bn Warner Bros acquisition

A US federal judge has cleared the way for Paramount to complete its $110 billion acquisition of Warner Bros, bringing an end to a months-long legal delay over the proposed merger.

US District Judge Araceli Martínez-Olguín on Wednesday approved a settlement reached with a coalition of 12 states led by California, which had challenged the deal on antitrust grounds. The states argued that the merger could create a dominant media company with the ability to influence prices for films and television content.

Under the settlement, the merged company will be required to release at least 30 movies annually in US cinemas for five years and invest an additional $300 million each year in US film and television production.

Failure to meet the theatrical release requirement could result in the company being forced to sell Miramax, according to the terms of the agreement.

Court rejects objections to settlement

Several groups opposed to the merger had urged the court to reject the settlement, arguing that it did not go far enough to address their concerns.

Martínez-Olguín, however, described the agreement as a “reasonable factual and legal resolution,” concluding that demands for additional measures did not establish sufficient legal grounds to block the deal.

The California Department of Justice said the settlement addressed its antitrust concerns while safeguarding competition and consumer choice and taking into account the interests of workers in the state.

The agreement also requires Paramount and Warner Bros to negotiate basic cable arrangements separately for their respective networks. In addition, a board made up of journalists will be established to oversee CBS News and CNN.

Kreiz to join Paramount leadership

As part of the leadership changes surrounding the merger, Mattel CEO Ynon Kreiz will join Paramount on October 5 and become co-CEO once the transaction closes.

The companies said in a joint statement late Wednesday that they expect the acquisition to be completed on October 6. Paramount and the Writers Guild of America have also resolved a separate antitrust lawsuit.

Under that agreement, the company will contribute $17.5 million to the guild’s health fund and maintain staffing levels at CBS News for five years.

Mattel’s Kreiz to become Co-CEO

Separately, Paramount said Mattel CEO Ynon Kreiz will join on October 5 and become co-CEO when the deal closes alongside chairman and CEO David Ellison, running day-to-day operations and integration.

Kreiz, Mattel’s CEO since 2018, turned the toymaker’s brands into films, TV shows and games, delivering “Barbie,” Warner Bros’ highest-grossing film ever.

The hire gives Ellison, whose background is on the creative side, a seasoned operator who steered Mattel through the pandemic and tariffs, as Paramount aims for more than $6 billion in savings from the merger.

Before Mattel, he spent much of his career in TV and digital media, co-founding Fox Kids Europe and running Big Brother producer Endemol. He later ran YouTube network Maker Studios, which he sold to Disney in 2014.