A federal judge has approved Paramount’s settlement with 12 state attorneys general who sued to block its acquisition of Warner Bros Discovery, clearing the final legal obstacle preventing the companies from completing their merger.
U.S. District Judge Araceli Martínez-Olguín approved the proposed consent decree Wednesday, finding the agreement represented a reasonable resolution of the states’ antitrust case.
“The Court finds the proposed consent decree represents a reasonable factual and legal resolution of the dispute,” Martínez-Olguín wrote in her order on Wednesday.
The states, led by California Attorney General Rob Bonta, sued Paramount in July, alleging its combination with WBD would reduce competition in theatrical film distribution and cable programming. Paramount agreed not to complete the transaction while the lawsuit remained pending.
Paramount and the states reached a settlement on September 21 after earlier negotiations over potential structural remedies, including asset sales, failed to produce an agreement.
Under the five-year settlement, Paramount agreed to certain theatrical film-release commitments, additional spending on U.S. film production and separate negotiations with distributors for Paramount and WBD cable networks. The agreement also calls for an independent board overseeing editorial matters at CBS and CNN and includes financial support for workers displaced by the merger.
Martínez-Olguín acknowledged objections from outside groups that argued the settlement did not go far enough, but said those concerns did not provide a legal basis for rejecting the negotiated agreement.
The approval allows Paramount to move toward closing the transaction, which CEO David Ellison previously said could take about two weeks following final court approval.
Paramount is already preparing the leadership structure of the combined company. The company said Wednesday that Mattel Chairman and CEO Ynon Kreiz will become co-CEO alongside Ellison following the transaction.
The announcement comes one day after Cindy Holland departed her role overseeing Paramount’s direct-to-consumer business. HBO Chairman and CEO Casey Bloys, who also oversees streaming platform HBO Max, is expected to manage the combined company’s streaming operations at the combined company.
