US court allows Paramount to close $110 billion Warner Bros deal — Asharq Al-Awsat

A US federal court has allowed Paramount to complete its $110 billion acquisition of Warner Bros. US District Judge Araceli Martinez-Olguin approved a September 21 settlement agreement between the company and a coalition of 12 states led by California, which had sought to block the merger over antitrust concerns. As Asharq Al-Awsat reports, the companies expect to close the deal on October 6.

Terms of the settlement

The states challenging the merger said it could create a media giant capable of raising prices for films and television productions. Under the settlement agreement, the combined company must release at least 30 films annually in US theaters for five years and spend an additional $300 million each year on production in the United States.

Failure to meet the requirement for the number of theatrical releases could result in an obligation to sell Miramax. The company must also separately negotiate basic cable television agreements for the channels of the two companies and establish a journalists' board to oversee CBS News and CNN.

Judge Martinez-Olguin called the agreement a reasonable factual and legal resolution. A representative of the California Department of Justice said the settlement addresses antitrust concerns, protects competition and consumer choice, and takes into account the interests of the state's workers.

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New co-CEO

Paramount also announced that Mattel CEO Ynon Kreiz will join the company on October 5. After the deal closes, he will become co-chief executive officer alongside chairman and CEO David Ellison and will be responsible for day-to-day management and business integration.

Kreiz has led Mattel since 2018. During this time, the company expanded its brands into films, television shows, and games, while “Barbie” became Warner Bros.' highest-grossing film. Paramount expects to achieve more than $6 billion in savings from the merger.

Separately, the companies settled an antitrust lawsuit filed by the Writers Guild of America. They agreed to pay $17.5 million into the guild's health insurance fund and, for five years, maintain employment levels at CBS News in line with WGA standards.