Judge Approves Settlement Clearing Paramount's $111-Billion Warner Bros. Discovery Deal

Los Angeles Times··US·Read original
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Summary · why it matters

A federal judge in Oakland has approved a settlement allowing Paramount Skydance Chief Executive David Ellison to finalize his $111-billion acquisition of Warner Bros. Discovery, a deal that could close by early next month. The five-year consent decree requires the combined Paramount-Warner Bros. to release 30 films in theaters each year, commit an additional $1.5 billion to domestic film production and set aside $47.5 million for workers who may be adversely affected by the merger. It also creates a five-member panel to monitor editorial independence at CBS News and CNN, though critics note the Ellisons control the board appointments, and bars Paramount from selling or closing its Melrose Avenue campus in Hollywood or the larger Warner Bros. lot in Burbank, which must be operated in a manner consistent with past practices for at least five years. An independent monitor is expected to oversee implementation, and Paramount will face restrictions on how it wields clout in negotiations over distribution of its basic cable TV channels. The merger has been unpopular in Hollywood, with opponents accusing California Atty. Gen. Rob Bonta, who led negotiations with Paramount, of caving to political pressure from Gov. Gavin Newsom and Los Angeles Mayor Karen Bass, who publicly urged him to abandon his court fight in favor of settlement talks.

Impact on assets 3

Communication Services▲ · 2 stocks
Paramount Skydance Corporation
PSKY
▲ PositiveCapitalrelevance

Judge approves settlement clearing Paramount Skydance's $111-billion acquisition of Warner Bros. Discovery, allowing the deal to close.

Warner Bros Discovery Inc
WBD
▲ PositiveCapitalrelevance

Settlement approval clears the way for Warner Bros. Discovery to be acquired by Paramount Skydance in the $111-billion deal.

Cloud & Digital Infrastructure▲ · 1 stocks

Off-coverage companies 1

CNNPrivate± Mixed
Regulationrelevance

Settlement creates a five-member panel to monitor editorial independence at CNN, though critics note the Ellisons control board appointments.

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