A federal judge in California on Wednesday signed a consent decree approving a settlement between Paramount and a coalition of twelve US states, removing the final major legal obstacle to the media giant’s acquisition of Warner Bros. Discovery.
Judge Araceli Martinez-Olguin bound Paramount to specific concessions aimed at addressing antitrust concerns raised by state officials. The commitments are set to remain in effect for five years, with the court retaining enforcement authority over the agreement.
The merger, which was finalized after a bidding war against Netflix earlier this year, will unite Paramount’s assets with Warner Bros. Pictures, CNN, and the HBO Max streaming service, creating a massive Hollywood conglomerate spanning television, news, and cinema.
David Ellison, Paramount’s chairman and CEO, won control of the company with backing from his family’s wealth and significant funding from sovereign wealth funds in Saudi Arabia, Qatar, and Abu Dhabi. His father, Oracle co-founder Larry Ellison, also provided major financial guarantees.
Ellison announced that Ynon Kreiz, the current CEO of Mattel, would serve as co-CEO of the combined entity once the merger closes. Kreiz, who oversaw Mattel’s entry into film production with the 2023 hit “Barbie,” is scheduled to join Paramount’s board on October 5. While Ellison will focus on strategy and creative direction, Kreiz will manage day-to-day operations and business integration.
“Bringing together Paramount and Warner Bros. Discovery to create a next-generation global media company is a transformational moment for our industry,” Ellison said in a statement.
The deal received preliminary approval from the Trump administration in June without requiring structural changes. However, twelve states subsequently filed lawsuits to block the transaction, arguing it would harm competition.
Critics within the film industry warned that the consolidation could lead to significant job cuts and a reduction in annual film output. News organizations also raised alarms about potential compromises to CNN’s editorial independence.
To address these concerns, the settlement includes safeguards such as a dedicated board to protect CNN’s journalistic autonomy. Additionally, the decree mandates that the merged studio release 30 movies in each of the first two years, increasing to 32 films annually for the following three years.
The legal resolution comes shortly after a controversial executive order by President Donald Trump attempting to ban CNN, Politico, and MS NOW from the White House. That order was swiftly reversed following a successful lawsuit by the outlets.
Paramount had previously indicated it might relocate its headquarters out of California if the state’s attorney general, Rob Bonta, did not withdraw the antitrust suit.
The settlement was initially reached on September 21 and proceeded to judicial review before Wednesday’s approval.
A Saudi-backed merger of this scale is fascinating. Hollywood is changing fast, and the geopolitical implications are worth watching closely.
CNN’s editorial independence safeguard is good news. I really hope this dedicated board actually has teeth and isn’t just for show.
So the government allows one massive media conglomerate as long as they promise to make enough content? Antitrust enforcement feels toothless lately.
Thirty movies a year sounds like a lot, but I worry about quality. Will these be quick cash grabs instead of genuine art?