A US federal judge has approved a settlement that allows Paramount to proceed with its acquisition of Warner Bros Discovery, removing a major legal obstacle to one of the media industry’s largest proposed mergers.
The deal has not yet closed. Paramount and Warner Bros Discovery say they expect to complete it on 6 October. Reuters reported that the ruling clears the way for the acquisition to proceed after months of legal challenges.
Paramount has also announced that Mattel chief executive Ynon Kreiz will join the company on 5 October and become co-CEO alongside David Ellison when the acquisition closes. The company confirmed the appointment in an official Paramount announcement.
What the Court Approved
Judge Araceli Martínez-Olguín approved a settlement between Paramount and a California-led group of 12 US states.
The states had sued to block the takeover, arguing that combining the companies could reduce competition and increase prices for film and television customers. The settlement resolves that antitrust challenge and allows the deal to move towards completion.
The agreement places several conditions on the combined business.
According to Reuters, Paramount must release at least 30 films a year in US cinemas for five years and spend an additional $300 million annually on US production.
The settlement also requires separate negotiations for distribution deals covering the companies’ existing basic cable channels and establishes an independent board to oversee journalistic standards at CBS News and CNN.
Critics of the merger have argued that the settlement does too little to address concerns about competition and editorial independence. The court nevertheless found that the agreement met the required legal standard.
Why Kreiz’s Appointment Matters
Kreiz has led Mattel since 2018 and has overseen efforts to expand the company’s brands into film and other entertainment businesses.
His appointment signals Paramount’s focus on integrating and managing a much larger collection of studios, television networks and streaming services after the acquisition.
In its official announcement, Paramount said Kreiz will focus on the day-to-day management and integration of the combined business, while Ellison will remain responsible for long-term strategy, creative direction, technology and capital allocation.
Kreiz is due to share leadership of the combined company with Ellison once the transaction closes.
The merged business would bring Paramount+, CBS and Paramount Pictures together with Warner Bros, HBO Max and CNN. Reuters said the transaction is valued at about $110 billion.
The scale of that combination is why the deal has drawn significant regulatory scrutiny. It would place a wide range of major entertainment, news and streaming assets under one corporate group.
What Happens Next
The immediate next step is completion of the acquisition, currently expected on 6 October. Kreiz is scheduled to join Paramount a day earlier, on 5 October.
Until then, the court ruling clears the legal path for the deal; it does not mean the two companies have already merged.
