business
Paramount Wins Court Approval to Take Over Warner Bros
A US federal judge has approved a settlement clearing Paramount's $110 billion acquisition of Warner Bros, resolving a legal challenge brought by a coalition of 12 states over concerns about media market consolidation.
US District Court Judge Araceli Martinez-Olguin approved the settlement, describing it as a fair and reasonable approach to addressing competitive concerns and clearing the way for one of the largest media mergers in history.
The settlement follows a lawsuit brought by a coalition of 12 states, led by California, which argued the merger would consolidate roughly a third of all theatrical releases and basic cable programming under a single company. The states dropped their legal challenge on 21 September in favour of a five-year agreement requiring Paramount to commit to 30 theatrical film releases per year in the US and to keep cable negotiations for Warner-owned and Paramount-owned channels separate.
The deal also establishes a five-member panel intended to protect the editorial independence of CNN and CBS. Sceptics have raised concerns about the arrangement, noting that Paramount chief executive David Ellison holds authority over appointments to that oversight board. Ellison, son of Oracle founder Larry Ellison, has close ties to the Trump administration, and his earlier acquisition of Paramount saw CBS News placed under the leadership of pro-Israel commentator Bari Weiss.
Senator Elizabeth Warren described the outcome as a disastrous result, while California Governor Gavin Newsom had actively encouraged the settlement route rather than continued litigation.
Paramount had previously outbid Netflix in February to secure Warner Bros's portfolio, which includes Warner Bros Pictures, CNN, and HBO Max. The Trump administration approved the merger without conditions in June.
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