Paramount gets court green light on Warner Bros deal, names Mattel's Kreiz co-CEO
PSKY•A U.S. judge approved a settlement clearing Paramount to close its $110 billion acquisition of Warner Bros. Paramount also named Mattel CEO Ynon Kreiz co-CEO of the combined company when the deal closes.
1. Court approves settlement
The order approves a settlement with a California-led group of 12 states that had sued to block the merger. The combined company must release at least 30 films annually in U.S. theaters for five years and spend an additional $300 million a year on U.S. production; missing the film quota could force it to sell Miramax. It must also negotiate basic cable deals separately for the companies' channels and create a board of journalists to oversee CBS News and CNN.
2. Kreiz to join Paramount
Kreiz will join Paramount on October 5 and become co-CEO alongside David Ellison when the deal closes, overseeing day-to-day operations and integration. Paramount is aiming for more than $6 billion in savings from the merger. The companies also settled a Writers Guild of America antitrust lawsuit, agreeing to pay $17.5 million to the guild's health fund and maintain WGA staffing levels at CBS News for five years.
