Judge Approves $111 Billion Paramount and Warner Bros. Discovery Merger

U.S. District Judge Araceli Martinez-Olguin approved a settlement allowing Paramount to acquire Warner Bros. Discovery in a $111 billion merger. The court-signed consent decree resolves a monthslong antitrust deadlock between Paramount, several states, and the Writers Guild of America.

To maintain market competition, the combined entity must release at least 30 theatrical films annually for the first two years and 32 films for the following three years. The company must also adhere to specific theatrical windows and SVOD holdbacks. Penalties for failing to meet these quotas include $30 million per-film fines or the forced divestiture of Paramount's stake in Miramax.

Additional mandates require the company to keep basic-cable negotiations separate and establish an independent board for CNN and CBS News. The deal is expected to close on October 6. Leadership changes include former Mattel CEO Ynon Kreiz joining as co-CEO, while Casey Bloys is expected to lead the streaming business following the exit of Cindy Holland.