Paramount-Warner Bros. merger advances after judge approves settlement

October 1, 2026 at 03:56 AM2 min

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A federal judge approved the settlement of an antitrust lawsuit on Wednesday, clearing Paramount's $110 billion acquisition of Warner Bros. Discovery to proceed. Paramount CEO David Ellison named Mattel CEO Ynon Kreiz as co-CEO of the combined company. The merger is expected to close on October 6.

Key Facts

Judge Araceli Martínez-Olguín approved the settlement on Wednesday, calling it a "reasonable factual and legal resolution."
Paramount agreed to release at least 30 films annually in U.S. theaters for five years and spend an additional $300 million per year on domestic production.
The merger is expected to close on October 6, uniting Warner Bros. studio with Paramount, HBO Max with Paramount+, MTV with Discovery, and CBS News with CNN.
David Ellison will remain chairman and CEO, while Ynon Kreiz will serve as co-CEO and join the combined company's board of directors.
The settlement requires Paramount to negotiate cable deals separately for the two companies' channels and create a journalism council to oversee CBS News and CNN.

Court Approval

Judge Araceli Martínez-Olguín issued an order accepting the settlement on Wednesday afternoon. The settlement, dated September 21, resolved a lawsuit filed by 12 state attorneys general led by California. The states had argued the deal would create a "monopolist" and "media giant" capable of raising prices for film and television consumers. Martínez-Olguín called the agreement a "reasonable factual and legal resolution." A California Department of Justice representative said the settlement "resolves our antitrust concerns, protects competition and consumer choice, and centers the needs, concerns, and future of California workers."

Leadership Appointments

Minutes after the judge's order, Paramount CEO David Ellison announced he is hiring Ynon Kreiz as co-CEO of the combined company. Kreiz has been CEO of Mattel for the past eight years. Ellison will remain chairman and CEO, while Kreiz will be co-CEO and join the combined company's board of directors. Ellison said the division of labor is "built on our complementary strengths, with clear reporting lines." Kreiz will focus on day-to-day management and integration of the combined businesses, according to the Paramount press release.

Merger Conditions

Under the settlement, Paramount must release at least 30 films annually in U.S. theaters for five years and spend an additional $300 million per year on domestic production. Failure to meet the conditions could force the company to sell the Miramax film studio. The company must also negotiate cable deals separately for the two companies' channels and create a journalism council to oversee CBS News and CNN. The merger is expected to close on October 6, and the new name of the combined company could be announced as soon as Thursday.