Judge approves Paramount's settlement with states, clearing Warner Bros. Discovery deal

A federal judge on Wednesday, September 30, 2026, approved Paramount's settlement with 12 US states that had sued over its takeover of Warner Bros. Discovery. The ruling removes the last legal obstacle to the merger, according to the Associated Press and France 24.

The ruling

US District Judge Araceli Martinez-Olguin, in California, found that the proposed consent decree was a "fair, reasonable, and good faith approach to address the competitive harms" alleged in the states' lawsuit, the AP reported. By signing the decree, the judge made Paramount's concessions binding, and the court has the power to enforce them for five years, according to France 24.

The AP reported that the merger is valued at $81 billion, or about $111 billion including debt. The companies now expect to complete the deal on October 6.

What Paramount agreed to

The twelve states, led by California Attorney General Rob Bonta, sued in July to block the deal, arguing that it would "extinguish competition" in Hollywood, according to the AP.

Under the settlement, the merged studio must release 30 films in theaters each year for the first two years after the deal closes, and 32 films a year for the following three years, both outlets reported. The AP reported that Paramount also pledged to increase US film production spending by at least an additional $1.5 billion over five years.

Other terms reported by the AP include $47.5 million for worker training and career development, a requirement to negotiate cable channel distribution deals for Paramount and Warner Bros. Discovery networks separately for five years, and the creation of a "News Editorial Independence Board" to oversee CBS and CNN. France 24 described the board as a safeguard for CNN's editorial independence.

Background

France 24 reported that Paramount won a bidding contest against Netflix in February for Warner Bros. Discovery's assets, which include Warner Bros. Pictures, CNN and the HBO Max streaming service. The Trump administration's Justice Department had already cleared the deal before the states filed suit, according to the AP.

Paramount itself was acquired by Skydance in 2025. Its chairman and CEO, David Ellison, will be joined after the close by Mattel chief executive Ynon Kreiz as co-CEO, the AP reported.

"Bringing together Paramount and Warner Bros. Discovery to create a next-generation global media company is a transformational moment for our industry," Ellison said in a statement quoted by France 24. On Kreiz, he said: "In Ynon, I'm adding a partner with strong leadership and the operating firepower this integration demands."

Why it matters

The merger will bring Warner Bros. Pictures, CNN and HBO Max under the same owner as Paramount and CBS. Because the judge signed the consent decree, the film-release minimums, the extra US production spending and the news-oversight board are now court-enforceable commitments, rather than voluntary promises. The states had argued the deal would reduce competition in Hollywood; the settlement is their attempt to limit that effect, and the court can enforce its terms for five years after the close.

Sources

This article was drafted with AI assistance and checked against the sources above. Company claims are reported as claims. Cover image is AI-generated.