Paramount cleared to take over Warner Bros. Discovery

A federal judge has approved a settlement between Paramount and a group of US states, paving the way for its acquisition of Warner Bros. Discovery. This merger will create a Hollywood empire encompassing television, news, and cinema. Judge Araceli Martinez-Olguin of California signed the consent decree, which will govern the terms of the acquisition for five years.

Paramount CEO David Ellison, whose family has ties to US President Donald Trump, won the bidding war against Netflix for control of assets including Warner Bros. Pictures, CNN, and HBO Max. Mattel CEO Ynon Kreiz will join Paramount as co-CEO once the merger closes, with Ellison remaining as chairman and CEO. The combined entity is expected to produce 30 movies annually for the first two years and 32 per year thereafter.

The Trump administration approved the deal in June without demanding changes, and it came under scrutiny from 12 US states that sued to halt the transaction. The decree includes safeguards to protect CNN's editorial independence, but opponents in the industry raised concerns about potential job cuts and a reduction in film production.