Paramount gets court green light on Warner Bros deal, names Mattel’s Kreiz co-CEO

On Wednesday, US District Court Judge Araceli Martínez-Olguín granted Paramount permission to finalize its $110 billion acquisition of Warner Bros, putting an end to a lengthy holdup. This decision was reached after the judge approved a settlement with a California-led coalition of 12 states, which had sought to block the historic media merger. The settlement, signed on September 21, was intended to prevent the creation of a media giant that could potentially inflate film and TV costs.

To comply with the terms of the settlement, Paramount must release a minimum of 30 films annually in US theaters for the next five years. Additionally, the combined entity will allocate an extra $300 million per year towards US production. Failure to meet these film production requirements could result in the sale of Miramax. Moreover, the company will need to negotiate cable deals independently for its and Warner Bros' channels, and establish a board of journalists to oversee the operations of CBS News and CNN.

Although several groups opposed to the merger raised concerns, Judge Martínez-Olguín deemed the settlement a "reasonable factual and legal resolution." The California Department of Justice expressed satisfaction with the agreement, stating that it addresses their antitrust worries, safeguards competition and consumer choice, and prioritizes the needs and concerns of California workers.

This announcement also brought the news that Mattel CEO Ynon Kreiz would join Paramount as co-CEO upon the deal's completion, set for October 6. Kreiz, who has been leading Mattel since 2018, will collaborate with Paramount chairman and CEO David Ellison to oversee day-to-day operations and integration. Notably, Kreiz's expertise in transforming Mattel's brands into successful films, TV series, and games, including the highly lucrative Barbie film, is expected to bolster Paramount's media portfolio.