Judge authorizes Paramount to finalize takeover of Warner Bros. Discovery for $110 billion

A California judge on Wednesday formally approved Paramount Skydance’s settlement with California and other states, the final hurdle needed to complete its takeover of Warner Bros. Discovery for $110 billion.

The seismic merger will bring together CBS News and CNN, HBO Max and Paramount+, as well as the famous Warner Bros. film studios. and Paramount Pictures.

Shortly after the judge’s approval, David Ellison, CEO and majority shareholder of Paramount Skydance, announced that Mattel CEO Ynon Kreiz would become co-CEO of the combined media giant.

Kreiz will join the company on October 5, indicating that the deal will likely close on that date or shortly thereafter.

“As chairman and CEO, Ellison will lead all strategy, creative and technology, while Kreiz, as co-CEO, will oversee the company’s day-to-day operations and integration of the combined businesses,” the release said.

Multiple media outlets also reported this week that Paramount streaming chief Cindy Holland was leaving the studio and that HBO chief Casey Bloys would take on a new role running the combined streaming operations.

After the deal was approved by the U.S. Department of Justice, the European Commission and dozens of other countries around the world, it was delayed by a lawsuit led by California’s Democratic Attorney General Rob Bonta.

Bonta and other state attorneys general feared that the deal, if reached, would reduce competition and potentially jeopardize CNN’s journalistic independence.

Paramount Skydance, led by Ellison, reached a deal with the States on September 21 that will require the combined company to release at least 30 films a year and establish an editorial board to oversee CNN and CBS News.

Larry Ellison, the father of Paramount CEO David Ellison, is a close ally of President Donald Trump. He is personally backing the deal with tens of billions of dollars from his own fortune.

After acquiring Paramount, David Ellison named former New York Times opinion editor Bari Weiss as head of CBS News. She clashed with longtime correspondents and was accused of undermining their editorial independence.

The combined company has pledged to invest more than $1 billion in U.S. film production and worker training.

The companies did not immediately respond to a request for comment.

Judge Araceli Martínez-Olguín’s approval comes just hours before the so-called ticking fee goes into effect for Paramount Skydance.

To build confidence in the proposed merger earlier this year, Paramount agreed to pay Warner Bros. shareholders. Discovery 25 cents per share each quarter if the transaction was not completed by September 30. This penalty would represent more than $600 million every three months.

“The parties reached an agreement following highly contentious, albeit brief, litigation, and they reached their agreement after what they consider to have been several rounds of extensive negotiations,” Martínez-Olguín wrote in the order.

Some groups opposed to the merger, such as the Block the Merger coalition, called in an amicus brief for the company-state deal to be rejected.

The group criticized the state’s attorneys general for what it called an “about-face” after filing a lawsuit to end the deal. “The document argues that small business owners and independent contractors will not receive the same supports as members of major unions if the consent decree is not respected,” the group said.

“As for the so-called solutions proposed by the regulation, they do nothing to protect fair competition,” the group added.

Shares of Paramount Skydance and Warner Bros. Discovery closed near their highest levels of the day following the news. Paramount’s shares have been beaten more than 20% since the start of the year as the merger remains in limbo.