A California judge signed off on a settlement that removes the final legal barrier to Paramount Skydance’s $110 billion acquisition of Warner Bros. Discovery. The order, issued by U.S. District Judge Araceli Martínez‑Olguín, satisfies the last condition required for the merger to close, according to statements from both companies.
Deal Structure and Leadership Changes
The merger will combine two of the nation’s most recognizable media brands, linking CBS News with CNN, HBO Max with Paramount+, and the storied film studios Warner Bros. and Paramount Pictures under a single corporate roof. Shortly after the court’s approval, David Ellison, the chief executive and controlling shareholder of Paramount Skydance, announced that Mattel CEO Ynon Kreiz would assume the role of co‑CEO of the combined entity. Kreiz is slated to join on Oct. 5, and the companies said the transaction is expected to close on Oct. 6.
In a joint statement, Ellison was described as “Chairman & CEO” who will steer overall strategy, creative direction, and technology, while Kreiz, as co‑CEO, will manage day‑to‑day operations and oversee the integration of the merged businesses. The announcement also noted that Paramount’s streaming chief Cindy Holland will depart the studio, and HBO executive Casey Bloys will take charge of the combined streaming operations.
Regulatory Hurdles and Settlement Terms
The deal had already cleared the U.S. Justice Department, the European Commission and dozens of other jurisdictions worldwide. It was subsequently stalled by a lawsuit led by California Attorney General Rob Bonta and other state attorneys general, who argued the transaction could diminish competition and threaten the editorial independence of CNN.
Paramount Skydance reached a settlement with the states on Sept. 21 that imposes specific conditions on the merged company. The agreement requires the new entity to release at least 30 films annually and to establish an editorial board that will oversee both CNN and CBS News. In addition, the companies pledged to invest more than $1 billion in U.S. film production and worker‑training initiatives.
Judge Martínez‑Olguín’s approval arrived just hours before a “ticking fee” provision takes effect. Earlier this year, Paramount agreed to pay Warner Bros. Discovery shareholders a quarterly penalty of 25 cents per share if the transaction failed to close by Sept. 30, a sum that would exceed $600 million every three months.
In her written order, Martínez‑Olguín noted that the parties concluded their agreement after “highly contested, however brief, litigation” and “several rounds of in‑depth negotiations.” A spokesperson for the California Department of Justice welcomed the decision, saying the settlement “resolves our antitrust concerns in every market we brought in our case, protects competition and consumer choice, and centers the needs, concerns, and futures of California workers.”
Opposition groups, including the Block the Merger coalition, filed an amicus brief urging the court to reject the settlement. The coalition argued that the remedies do not safeguard fair competition and that the agreement favors major unions over small‑business owners and independent contractors.
Following the announcement, shares of both Paramount Skydance and Warner Bros. Discovery traded near their daily highs. Paramount’s stock, which had fallen more than 20 % year‑to‑date while the merger lingered in uncertainty, showed a modest rebound on the news.
Other notable developments tied to the merger include the appointment of former New York Times opinion writer Bari Weiss to run CBS News, a move that has already sparked internal friction and accusations of editorial interference. Larry Ellison, David Ellison’s father and a noted ally of former President Donald Trump, is also contributing tens of billions of dollars from his personal fortune to support the transaction.
With the California settlement now approved, the merger is positioned to close as scheduled on Oct. 6, pending any further procedural steps. The combined company will emerge as a dominant force across broadcast news, streaming services, and film production, reshaping the competitive landscape of the U.S. media industry.
Mitchell Landsberg is a Senior Technology Correspondent at News Raise. He covers consumer electronics, artificial intelligence, software developments, and digital privacy trends.
