Paramount wins court approval for Warner Bros merger

A federal judge approved a massive $110 billion deal that will join Paramount and Warner Bros into one giant media company. The ruling came on September 30, clearing the way for the merger to officially close on October 6. As part of the announcement, Paramount also named Ynon Kreiz — the boss of toymaker Mattel — as its new co-CEO to help run the combined business.

The merger had been held up for months because a group of 12 states, led by California, went to court to try to stop it. Those states argued that combining two of the biggest names in film and TV would create a media giant powerful enough to raise prices for movies and TV shows. US District Court Judge Araceli Martínez-Olguin approved a settlement between the states and the companies, allowing the deal to move forward.

Under the settlement, the new combined company agreed to several important rules. It must release at least 30 films per year in US movie theaters for the next five years. It must also spend an extra $300 million each year on productions made in the United States. If the company fails to meet the movie quota, it could be forced to sell Miramax, a well-known film studio.

The agreement also included rules about news and cable TV. The company must negotiate cable TV deals separately for channels belonging to each of the two original companies. It must also set up a board made up of journalists to keep watch over CBS News and CNN, making sure those news outlets stay independent.

Not everyone was happy with the settlement. Some groups strongly opposed the merger and urged the judge to reject the agreement, saying it did not go far enough to protect competition. Judge Martínez-Olguin said the deal was a reasonable resolution and that those who wanted stricter rules did not show enough legal reason to block it.

California's Department of Justice said the settlement protects competition and consumer choice, and looks out for California workers. The companies also reached a separate deal with the Writers Guild of America, a union for TV and film writers. As part of that agreement, the companies will pay $17.5 million to the writers' health fund and keep WGA staffing levels at CBS News for five years.

Ynon Kreiz is set to join Paramount on October 5 and become co-CEO once the deal closes. He will work alongside David Ellison, who is Paramount's chairman and CEO. Ellison has a background in the creative side of the entertainment world, so Kreiz's experience running a large company is expected to fill an important gap.

Kreiz has led Mattel since 2018, turning popular toy brands into movies, TV shows, and games. His biggest success was the Barbie movie, which became Warner Bros' highest-grossing film ever. Before Mattel, he co-founded Fox Kids Europe, ran Endemol — the company behind Big Brother — and later sold a YouTube network called Maker Studios to Disney in 2014. The new combined company is hoping his wide-ranging experience will help it save more than $6 billion through the merger.