Paramount received judicial approval to complete the acquisition of Warner Bros. Discovery for $110 billion USD (561 billion Brazilian reais). This decision was issued on Wednesday (30) by District Judge Araceli Martínez-Olguín, putting an end to months of disagreements in the United States.
The magistrate approved the agreement reached between the companies and a coalition of 12 US states led by California. This group had filed a lawsuit against the companies, arguing that the merger could harm competition in the film and television markets.
The approval removed one of the last major obstacles to closing the deal. The merger will bring together major studios, television channels, streaming services, and journalistic operations under one group, including Paramount Pictures, Warner Bros., CBS, CNN, HBO Max, and Paramount+.
More about the agreement
One of the most sensitive points of the agreement concerns journalistic operations. Paramount agreed to establish an independent editorial oversight board to monitor the journalistic standards of CBS News and CNN. The goal of this structure is to preserve the editorial independence of the two networks after the companies merge.
The agreement also provides for independent monitoring mechanisms to ensure compliance with obligations. An independent observer and other oversight bodies must verify that the new company adheres to the commitments made.
The decision, made on Wednesday, resulted from a dispute that intensified in July when California and 11 other states filed a lawsuit to halt the takeover. The states argued that the operation could reduce competition and affect workers and consumers.
However, on September 21, Paramount and the coalition reached an agreement that defined the terms for concluding the process. Among the agreed measures were increased film production in the United States, the creation of a fund of $47.5 million (about 242 million Brazilian reais) for employees affected by the merger, and rules for maintaining separate negotiations for cable television channels.
Paramount also entered into a separate agreement with the Writers Guild of America (WGA). As part of the settlement, the company agreed to pay $17.5 million (about 89 million Brazilian reais) to the union's health fund and maintain the current level of CBS News employees for five years.
The completion of the deal will unite two major traditional structures in the US entertainment industry. On one side are brands such as Paramount Pictures, CBS, and Paramount+; on the other are Warner Bros., HBO Max, and CNN. The new company will also gain an extensive catalog of films and series, consolidating film, television, streaming, and journalism operations under one management.
Paramount also announced that Ynon Kreiz, CEO of Mattel, will become co-CEO of the merged company alongside David Ellison. Kreiz will be responsible for operational activities and business integration, while Ellison will focus on strategic leadership, technology, talent management, and capital allocation.
With the judicial approval, the $110 billion acquisition is cleared to proceed to completion.
