A federal judge on Wednesday approved a settlement between Paramount and a group of US states that clears the way for its takeover of Warner Bros. Discovery, creating a Hollywood empire spanning television, news and cinema. Judge Araceli Martinez-Olguin of California signed the consent decree, binding the concessions that Paramount offered to end an antitrust challenge brought by 12 states.
The commitments run for five years, and the court will have the power to enforce them. Paramount, which is run by David Ellison, whose ultra-wealthy family has ties to US President Donald Trump, won a bidding war against Netflix in February for control of a stable of assets that includes Warner Bros. Pictures, CNN and the HBO Max streaming service.
The same day, Ellison named Mattel Chief Executive Ynon Kreiz as co-CEO of the combined company once the merger closes. Ellison will stay on as chairman and CEO, focusing on strategy, creative direction and technology, while Kreiz will handle day-to-day operations and the integration of the two businesses, the company said. Read moreParamount settles with US states, clearing path for Warner Bros. merger "Bringing together Paramount and Warner Bros.
Discovery to create a next-generation global media company is a transformational moment for our industry," Ellison said in a statement. "In Ynon, I'm adding a partner with strong leadership and the operating firepower this integration demands," he added. Kreiz, who has led Mattel since 2018 and oversaw its move into film with the 2023 blockbuster "Barbie," will join Paramount on October 5 and take a seat on the board at closing.
The Trump administration approved the deal, one of the largest-ever media mergers, in June without demanding a change to its business, before 12 US states sued to block the transaction. Financing for the deal reportedly includes about $24 billion in equity from the sovereign wealth funds of Saudi Arabia, Qatar and Abu Dhabi. David Ellison's father, billionaire Oracle founder Larry Ellison, provided major funding and a guarantee to lenders backing the deal.
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