A California judge has cleared the final legal hurdle for the $110 billion merger between Paramount Skydance and Warner Bros. Discovery, with the deal expected to close on October 6.
Key facts
- •The merger combines major assets including CBS News, CNN, HBO Max, and Paramount+.
- •Ynon Kreiz will join the company as co-CEO on October 5.
- •The settlement requires the combined company to release at least 30 films per year.
- •An editorial board will be established to oversee operations at both CNN and CBS News.
- •The company has pledged to invest over $1 billion in U.S. film production and worker training.
A California judge formally approved a settlement on Wednesday between Paramount Skydance and several states, allowing the company to proceed with its $110 billion acquisition of Warner Bros. Discovery. The merger combines major media entities including CBS News, CNN, HBO Max, and Paramount+. The deal is expected to officially close on October 6.
By the numbers
Leadership and Operational Changes
Following the court's approval, Paramount Skydance CEO David Ellison announced that Mattel CEO Ynon Kreiz will join the company on October 5 to serve as co-CEO. Ellison will oversee strategy, creative, and technology, while Kreiz will manage day-to-day operations and business integration. Additionally, reports indicate that HBO chief Casey Bloys will lead the combined streaming operations, succeeding departing streaming chief Cindy Holland.
Settlement Terms and Regulatory Hurdles
The merger faced opposition from California Attorney General Rob Bonta and other state officials over concerns regarding competition and the journalistic independence of CNN. To resolve these antitrust issues, Paramount Skydance agreed to release at least 30 films annually and establish an editorial board to oversee both CNN and CBS News. The company also pledged to invest over $1 billion in U.S. film production and worker training.
Financial Context
Judge Araceli Martínez-Olguín’s approval came shortly before a 'ticking fee' was set to take effect. Paramount had agreed to pay Warner Bros. Discovery shareholders 25 cents per share each quarter if the deal did not close by September 30, a penalty estimated at more than $600 million every three months. Following the announcement, shares for both companies closed near their daily highs.
Timeline
- September 21Paramount Skydance reached a settlement agreement with state attorneys general.
- September 30The deadline for the merger to close before a 'ticking fee' penalty took effect.
- October 5Ynon Kreiz is scheduled to join the company as co-CEO.
- October 6The expected closing date for the merger.
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This article was independently rewritten by ManyPress editorial AI from reporting originally published by NBC News Business.
