Paramount & WBD Merger Officially Set To Close as Judge Approves Settlement Agreement

The pending Paramount Skydance and Warner Bros. Discovery (WBD) merger has cleared yet another hurdle as it nears completion. Deadline that a federal judge approved the settlement between Paramount Skydance and a group of state Attorneys General who previously sought to block the merger between Paramount and WBD.

This was the last major hurdle for the merger to pass. U.S. District Judge Araceli Martínez-Olguín wrote in her sign-off on the settlement, “The Court finds the proposed consent decree represents a reasonable factual and legal resolution of the dispute. The parties’ proposed consent decree falls within the scope of the case made by the pleadings.”

Judge Martínez-Olguín also reportedly stated: “The Court recognizes that this proposed consent decree reflects a compromise of the claims short of full adjudication – compromise that may leave some dissatisfaction for both sides and the public but a compromise that saves the risk, time, and expense of litigating through trial.”

The settlement is not officially greenlit, as Deadline reports that Judge Martínez-Olguín is allowing more than a week for opposition briefs to be filed, with a Sept. 28 (?) [AN: The report says Sept. 28, which was two days ago.] deadline of 12 noon (PT) for Paramount and AGs to respond.

Paramount Skydance CEO David Ellison previously said it would take about two weeks for the companies to formally merge, which could take until about next week. Additionally, Paramount owes a ticking fee of $7 million a day to WBD shareholders starting Oct. 1 if the deal is not yet closed.

Twelve state AGs led by California’s Rob Bonta moved an antitrust case against the merger. However, both sides agreed to a settlement. Bonta reportedly said today about the settlement: “We are pleased the court has approved our settlement. Our settlement with Paramount resolves our antitrust concerns in every market we brought in our case, protects competition and consumer choice, and centers the needs, concerns, and futures of California workers.”

A New Era for Paramount and WBD

As reported by Variety, former Mattel CEO Ynon Kreiz will join Paramount Skydance starting Oct. 5 to serve as co-CEO along with David Ellison. Kreiz will help oversee daily operations and the combined business. Meanwhile, Ellison will reportedly lead strategy, creative, and technology functions. Additionally, Variety is reporting that Tuesday, October 6 the tentative closing date for the deal

As previously noted, WBD is the main broadcast partner and minority owner in AEW. Meanwhile, Paramount Skydance is the main streaming partner for TKO-owned UFC.

Tony Khan has spoken positively about the merger, stating that the merger “will make AEW stronger.” He has also spoken highly about Paramount Skydance CEO David Ellison, who he has worked with in the past through the NFL.