US judge allows Paramount to close Warner Bros acquisition

A US judge granted permission for Paramount to finalize its acquisition of Warner Bros on Wednesday, concluding a months-long delay for the $110 billion deal. The ruling came after a group of 12 states sought to halt the merger, arguing it would increase competition harms in the film and television sectors. These states brought their lawsuit to court, contending the merger would create a dominant player with the ability to raise prices in these industries.

The five-year agreement requires Paramount to adhere to certain theatrical film release quotas and maintain separate negotiations with cable providers for Warner-owned channels. Despite opposition from various groups, including those filing letters urging the court to reject the settlement, Judge Araceli Martínez-Olguín deemed the deal a "reasonable factual and legal resolution."

The agreement also mandates Paramount to establish an editorial board to ensure editorial independence at the CBS and CNN networks. Judge Martínez-Olguín dismissed concerns that this board would violate the First Amendment. Additionally, Paramount announced that Mattel's CEO Ynon Kreiz would become co-CEO of the company, effective upon the completion of the Warner Bros acquisition.

Kreiz had previously steered Mattel's transformation into a broader entertainment entity, leading to the creation of blockbuster films like Barbie and significant growth in the company's merchandise sales.