Paramount’s megamerger with Warner is set to close soon as judge approves settlement with 12 states

The $81 billion deal is expected to close on October 6.

[Photo: Jae C. Hong/AP Photo]

A federal judge has granted Paramount’s settlement agreement with 12 states that sued over the company’s takeover of Warner Bros. Discovery, allowing the companies to soon close their $81 billion megamerger.In a Wednesday order, U.S. District Judge Araceli Martínez-Olguín ruled that the proposed consent decree was a “fair, reasonable, and good faith approach to address the competitive harms” alleged by the states’ lawsuit. Paramount, which was bought by Skydance just last year, previously called the antitrust challenge the last hurdle ahead of closing its Warner merger.The companies now expect to complete the deal on Oct. 6. Shortly after Martínez-Olguín’s ruling Wednesday afternoon, Paramount also announced Ynon Kreiz — who is toy giant Mattel’s current chief executive — will soon join as co-CEO alongside David Ellison.In a statement, Ellison said Paramount’s merger with Warner marks a “transformational moment for our industry” and that he and his new co-CEO will lead a business that is “creator-first, tech-forward and built to scale globally.”A Paramount-Warner marriage will bring together two of Hollywood’s last five legacy studios. HBO Max, a library full of titles including “Harry Potter” and cable networks such as CNN will also find themselves under the same roof with CBS, the likes of the “Top Gun” franchise and the Paramount streaming service.That further concentrates power in an industry already run by just a handful of major players. And many critics of the deal have decried the states’ settlement, arguing the terms are too weak.

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