Paramount Warner Bros Merger Approved

Federal Judge Approves Paramount's Massive $111 Billion Acquisition of Warner Bros Discovery

A federal judge has approved a settlement allowing Paramount to close its $111 billion acquisition for Warner Bros. Discovery, ending a monthslong legal battle between the studio and states challenging the acquisition. The agreement includes a consent decree allowing Paramount and Warner Bros to release at least 30 theatrical films a year for the first two years and 32 for the following three, maintain minimum numbers of wide and independent releases, and ensure that at least half of the films are produced or jointly produced by the combined company. A $30 million per film penalty is assessed for missing the annual quota, with Paramount’s stake in Miramax potentially removed if the shortfall remains unaddressed. The court also included backstops requiring the combined companies to divest from studios and cable channels if they fail to comply with the deal.