Federal judge gives green light to Paramount–Warner Bros. merger: closing expected on October 6

On Wednesday, U.S. federal judge Araceli Martínez-Olguín approved the settlement between Paramount Skydance and the coalition of 12 state attorneys general led by California Attorney General Rob Bonta, removing the last legal obstacle to Paramount’s acquisition of Warner Bros. Discovery. The antitrust lawsuit, filed in July, would have gone to trial in March 2027 had this settlement not been reached — her decision clears the way for the largest transaction in Hollywood history, as CNN reports.

As part of the settlement, Paramount commits to releasing at least 30 films a year, investing more than $1 billion in U.S. film production and worker training, and preserving the editorial independence of CBS News and CNN — a board will monitor compliance with journalistic ethics standards. If separate cable TV distribution deals are not reached, some cable channels could be sold.

The “Block the Merger” coalition opposed the decision, calling it a failure to put consumers ahead of corporate consolidation interests. But with the court’s approval, the roughly $110–111 billion transaction — described by Variety as the most expensive acquisition in Hollywood history — can proceed toward closing.

From October 1, a “ticking fee” begins: Paramount must pay Warner Bros. shareholders about $7 million a day for each day the deal does not close. Paramount has announced it aims to close on October 6, while the combined company’s new name could be announced today.

Immediately after the court’s decision, Paramount CEO David Ellison announced he had hired Ynon Kreiz, Mattel’s chief for eight years, as co-CEO of the combined company: Ellison remains chairman and CEO — focusing on long-term strategy, creative direction, talent relations and technology — while Kreiz will focus on day-to-day management and integrating the two companies. The combined company merges the Warner Bros. studio with Paramount’s, HBO Max with Paramount+, MTV with Discovery and CBS News with CNN, with franchises such as Harry Potter, Game of Thrones, DC, Yellowstone, Mission: Impossible, Top Gun and Nickelodeon shows.