US judge approves settlement clearing Paramount to buy Warner Bros in $110B deal
U.S. District Judge Araceli Martínez-Olguín approved a settlement between Paramount and 12 state attorneys general on Wednesday, removing the final legal obstacle to close the $110 billion Warner Bros. Discovery acquisition.
Judicial approval resolves antitrust challenge
U.S. District Judge Araceli Martínez-Olguín in Oakland entered an order on Wednesday approving a settlement between Paramount and a coalition of 12 Democratic state attorneys general. The decision resolves an antitrust lawsuit that had blocked Paramount Skydance Corp. from closing its acquisition of Warner Bros. Discovery. The legal challenge, led by California Attorney General Rob Bonta, initially aimed to stop the transaction over concerns regarding competition in cable programming, wide release movies, and blockbuster films. Judge Martínez-Olguín evaluated the settlement agreed upon on 21 September 2026, granting over a week for opposition briefs before resolving the matter following a 28 September response deadline. The approved consent decree does not impose structural remedies or asset divestitures on the merging companies.
Timeline and financial structure of the transaction
With judicial approval secured, Paramount is moving forward to finalize the takeover, valued between $110 billion and $111 billion across source reports. Regulatory filings indicate a tentative closing date of Tuesday, 6 October 2026, while Paramount CEO David Ellison previously estimated that formal integration would require roughly two weeks. Closing expeditiously allows Paramount to minimize financial penalties, as the merger agreement imposes a ticking fee of about $7 million per day payable to Warner Bros. Discovery shareholders starting on 1 October 2026. To fund the debt-financed combination, Paramount started marketing a $44 billion bond offering this week. Prior to the court approval, the transaction had already secured clearance from antitrust authorities across 68 regulatory jurisdictions worldwide, including the U.S. Department of Justice.
- Paramount announces agreement to acquire Warner Bros. Discovery after competing bids
- Coalition of 12 state attorneys general files antitrust suit to block the deal
- Paramount reaches settlement agreement with the state attorneys general
- Court deadline passes for parties to respond to opposition briefs
- Judge Araceli Martínez-Olguín signs order approving the settlement
- Tentative target date set by Paramount to close the merger
Studio assets and unified streaming operations
The finalized combination unites two of Hollywood's largest production studios alongside an extensive portfolio of broadcast and cable networks. The merged entity will control television properties including CBS, CNN, MTV, TBS, Comedy Central, and Food Network. In streaming, the consolidation will integrate HBO Max and Paramount+ into a unified digital operation. The joined entertainment library spans franchises such as Harry Potter, Game of Thrones, the DC Universe, Yellowstone, Mission: Impossible, Top Gun, and the Nickelodeon programming catalog. The settlement concludes a process that began in February 2026, when Paramount launched a series of bids that eventually convinced the Warner Bros. Discovery board to abandon a competing proposal from Netflix.
Management transitions and executive departures
Top executive roles at the combined company are taking shape ahead of the closing date. David Ellison has recruited outgoing Mattel CEO Ynon Kreiz to take on a senior management post at the combined entity. In the streaming division, HBO chief Casey Bloys is positioned to oversee combined direct-to-consumer operations following the departure of Cindy Holland, who stepped down on Tuesday from running Paramount+. Warner Bros. Discovery CEO David Zaslav is expected to leave the company upon completion of the merger. Zaslav is set to receive more than $550 million in stock and cash, an exit package that includes $34.2 million in cash severance. Other senior Warner Bros. Discovery executives anticipated to depart include chief revenue and strategy officer Bruce Campbell and chief financial officer Gunnar Wiedenfels.
