A United States federal judge has given final approval for media giant Paramount to complete its $110 billion acquisition of Warner Bros., setting aside concerns regarding the long-term effects of media consolidation. On Wednesday, US District Court Judge Araceli Martinez-Olguin authorized a settlement between Paramount, Warner Bros., and a coalition of 12 states that had previously attempted to block the transaction.
In her ruling, Judge Martinez-Olguin characterized the agreement as a “fair, reasonable, and good faith approach to address the competitive harms” associated with the merger. The deal, one of the largest in media history, had faced significant opposition from a state-led coalition headed by California. Critics argued that merging the two entertainment giants would stifle competition, potentially consolidating control over nearly one-third of all theatrical releases and basic cable programming.
The lawsuit was abandoned on September 21 in favor of a five-year settlement. Under the terms of the agreement, Paramount is required to maintain a quota of 30 theatrical film releases annually in the US. Additionally, the combined entity must conduct negotiations with cable providers for Warner-owned channels separately from those for Paramount-owned channels. The settlement also establishes a five-member panel designed to protect the editorial independence of CNN and CBS.
Despite these safeguards, skeptics have raised alarms about the concentration of media power under David Ellison, the CEO of Paramount and son of Oracle billionaire Larry Ellison. Ellison oversees the board responsible for news independence decisions. His father, Larry Ellison, is a prominent supporter of pro-Israel causes and maintains close ties with the administration of President Donald Trump. David Ellison acquired Paramount last year through a controversial merger with his production company, Skydance, which also brought CBS under his control.
The acquisition has drawn scrutiny following the abrupt cancellation of CBS’s comedy program, The Late Show with Stephen Colbert, ahead of the merger. Subsequently, Ellison appointed Bari Weiss, a media figure known for pro-Israel views, to lead CBS News, prompting further concerns about diminished journalistic independence.
Senator Elizabeth Warren of Massachusetts criticized the outcome, describing the approval as a “disastrous outcome” that allows a Trump-aligned conglomerate to dominate American news and entertainment. Conversely, California Governor Gavin Newsom had previously urged the state’s Attorney General to abandon the lawsuit and pursue a settlement instead.
Paramount secured control of Warner Bros. holdings—including Warner Bros. Pictures, CNN, and HBO Max—after defeating streaming competitor Netflix in a bidding war in February. The Trump administration approved the deal without modifications in June.
The political angle here is huge. A Trump-aligned owner controlling both CNN and CBS news really shouldn’t slide through this quietly.
Does a five-year commitment to thirty films actually stop monopolistic behavior long-term? The safeguards feel like band-aids on a bullet wound.
$110 billion for nearly a third of Hollywood? This consolidation is terrifying for anyone who values diverse voices.