A US judge has given Paramount the green light to close its $110 billion acquisition of Warner Bros, ending a months-long holdup. The deal, one of the largest media mergers in history, was approved after a settlement was reached with a California-led group of 12 states that had sued to block the merger. The settlement requires the combined company to release at least 30 films a year in US theaters for five years and spend an extra $300 million a year on US production.
The settlement, approved by US District Court Judge Araceli Martínez-Olguín, addresses antitrust concerns and paves the way for the merger to close on October 6. Under the terms of the deal, the combined company must also negotiate basic cable deals separately for the two companies' channels and create a board of journalists to oversee CBS News and CNN. Groups opposed to the merger had objected strongly to the settlement, but Martínez-Olguín deemed it a "reasonable factual and legal resolution."
As part of the deal, Paramount has also settled a Writers Guild of America antitrust lawsuit, agreeing to pay $17.5 million to the guild's health fund and maintain WGA staffing levels at CBS News for five years. The companies said in a statement that the deal is expected to yield more than $6 billion in savings from the merger. The acquisition is set to create a media behemoth capable of driving up film and TV prices, but the settlement aims to mitigate this impact.
In a separate move, Paramount has named Mattel CEO Ynon Kreiz as co-CEO, alongside chairman and CEO David Ellison. Kreiz will join the company on October 5 and become co-CEO when the deal closes. He will be responsible for running day-to-day operations and integration. Kreiz has a background in TV and digital media, having co-founded Fox Kids Europe and run "Big Brother" producer Endemol.
Kreiz's appointment is seen as a strategic move to bring in a seasoned operator who can help steer the combined company through the challenges of integration. During his tenure at Mattel, Kreiz has successfully turned the toymaker's brands into films, TV shows, and games, including the hit film "Barbie," which became Warner Bros' highest-grossing film ever.
The merger and Kreiz's appointment are expected to have a significant impact on the media landscape. The combined company will have a significant presence in the film and TV industries, with a large library of content and a substantial production budget. Kreiz's experience in the industry will be crucial in navigating the complexities of the merger and ensuring a smooth integration.
The deal marks a significant milestone for Paramount and Warner Bros, and is set to reshape the media industry. With the settlement and Kreiz's appointment, the companies are poised to move forward with the merger and capitalize on the opportunities it presents. The acquisition is expected to close on October 6, marking the beginning of a new era for the combined company.
Key points
- Paramount's $110 billion acquisition of Warner Bros has been approved by a US judge, paving the way for the creation of a media behemoth.
- Mattel CEO Ynon Kreiz has been named co-CEO of the combined company, alongside David Ellison.
- The settlement requires the combined company to release at least 30 films a year in US theaters for five years and spend an extra $300 million a year on US production.
