Judge Approves Paramount's Merger Deal with 12 States
A federal judge has greenlit Paramount's settlement agreement with the 12 states that sued the company over its acquisition of Warner Bros. Discovery, paving the way for the $81 billion deal to close soon. Judge Araceli Martínez-Olguín ruled that the proposed consent decree was a fair, reasonable, and good-faith approach to addressing the alleged anticompetitive harm claimed in the states' lawsuit.
Judge Approves Paramount's Merger Deal with 12 States
Paramount had previously characterized the antitrust challenge as the last hurdle to completing its merger with Warner, with the goal of wrapping up the acquisition by early October. The deal would unite two of the last five traditional Hollywood studios, combining Paramount's film library with Warner's, as well as sharing platforms like HBO Max and CNN with CBS and Paramount+.
The states' lawsuit, led by California Attorney General Rob Bonta, was filed in July to block the merger outright. They argued the combination of Paramount and Warner would "eliminate competition" and reduce options for consumers, particularly cinephiles and cable subscribers. Last week, the states agreed to resolve their claims through new commitments from Paramount, including promises to increase film production in the US over the next five years, allocate millions for a fund to support workers affected by the merger, and establish a new editorial oversight system for CNN and CBS.
Bonta said the agreement aimed to "protect the careers of the people, the lives they've built here in California, the livelihoods that their families depend on." However, many merger critics quickly branded the deal a capitulation to corporate pressure, arguing the terms were too weak. Judge Martínez-Olguín did not immediately approve the terms, expressing concerns during a hearing that the court was not simply a rubber stamp for such agreements. She granted critics, including members of the Block The Merger coalition and the League of United Latin American Citizens, a brief window to voice their opposition.