Business 4 min read By Morgan Griffin
Paramount-Warner Bros. Merger Clears Final Legal Hurdle, Set to Close Next Week
A federal judge approved Paramount's settlement with 12 state attorneys general, removing the last obstacle to the most expensive takeover in Hollywood history. David Ellison also named Ynon Kreiz as co-CEO of the expanded studio.
Paramount's year-long battle to acquire Warner Bros. Discovery is finally nearing its end. On Wednesday, U.S. District Judge Araceli Martínez-Olguín approved a settlement between Paramount and 12 state attorneys general who had sued to block the merger on antitrust grounds, clearing the last legal obstacle for the deal to close next week.
The judge's approval of the consent decree resolves the antitrust case that had threatened to derail the most expensive takeover in Hollywood history. The settlement was reached on Sept. 21 between Paramount and the group of state attorneys general, and the court found the proposed consent decree to be a reasonable resolution. With the legal challenge removed, the merger between Paramount and Warner Bros. Discovery is now set to proceed.
In a swift follow-up move, Paramount chief David Ellison announced that Ynon Kreiz, the former CEO of Mattel, will become co-CEO of the newly expanded media giant. The appointment takes effect upon the close of the merger. In a statement, Ellison described the combination as a «transformational moment for our industry,» signaling the scale of the newly formed studio.
The merger caps a fierce, year-long campaign by Ellison to gain control of Warner Bros. Discovery. The deal brings together two of Hollywood's most storied film and television libraries, creating a media powerhouse with significant reach across production, streaming, and distribution. The acquisition's price tag makes it the most expensive takeover in the entertainment industry's history.
The antitrust lawsuit filed by the state attorneys general had represented the final regulatory hurdle. Their concerns centered on the potential for reduced competition in an already consolidated media landscape. The settlement, approved by Judge Martínez-Olguín, imposes conditions that address those antitrust worries while allowing the transaction to move forward. Details of the consent decree were not fully disclosed, but the court's approval signals that the agreed remedies were deemed sufficient to protect market competition.
Reaction to the judge's decision was immediate. The legal approval removes uncertainty that had hung over both companies for months, affecting everything from talent deals to production slates. With the path now clear, Paramount and Warner Bros. Discovery can begin the complex process of integrating their operations, a task that will likely reshape the entertainment industry's competitive dynamics.
The appointment of Kreiz as co-CEO adds a notable industry figure to the leadership of the combined company. Kreiz led Mattel through a period of significant transformation, including the successful launch of a film franchise based on the company's toy brands. His experience in brand management and content strategy is expected to complement Ellison's oversight as the new entity seeks to compete with streaming giants and legacy studios alike.
For Hollywood, the closure of this merger marks the end of a contentious chapter and the beginning of a new one. The combined company will control a vast array of films, television series, and intellectual property, giving it substantial leverage in negotiations with creators, distributors, and advertisers. How the new leadership navigates that power — and the conditions set by the settlement — will be closely watched across the industry.
The deal is expected to close next week, according to the timeline outlined in the settlement approval. Once completed, the integration process will begin in earnest, with Ellison and Kreiz at the helm of a studio that now stands among the largest in the world.
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