US judge allows Paramount to close Warner Bros acquisition
PSKY•A US judge approved a settlement clearing Paramount to close its $110 billion acquisition of Warner Bros, ending a months-long holdup. The five-year agreement includes theatrical release quotas and separate negotiations with cable providers; Paramount also agreed to establish an editorial board for CBS and CNN.
1. Settlement clears deal
US District Court Judge Araceli Martínez-Olguín approved a settlement between Paramount and a California-led group of 12 states that had challenged the acquisition on competition grounds. The settlement, reached September 21, requires Paramount to follow theatrical film release quotas for five years and keep negotiations with cable providers for Warner-owned channels separate.
2. Court rejects objections
Groups opposed to the merger urged the court to reject the settlement. Martínez-Olguín called the deal a “reasonable factual and legal resolution” and said objections that the agreement should do more did not establish legal violations; she also rejected arguments that the editorial board would violate the First Amendment.
3. New co-CEO appointment
Paramount said Mattel CEO Ynon Kreiz will become its co-CEO when the Warner Bros acquisition closes. Kreiz led Mattel’s expansion into films, television shows and digital games, including the global box-office hit “Barbie.”
