Judge approves Paramount settlement with states, clearing way for Warner Bros merger

A California judge on Wednesday approved Paramount's settlement with a group of states over its planned acquisition of Warner Bros. Discovery, clearing the way for the major merger to take place.

The antitrust lawsuit warned that the potential merger with Warner Bros would harm competition by lowering output and raising prices and thereby hurt both workers and consumers, but the settlement includes a commitment from Paramount to distribute 30 movies in theaters every year and spend an additional $1.5 billion on film production over the next five years. 

Judge Araceli Martínez-Olguín wrote in a court order that the deal, which could be finalized as early as next week, “represents a reasonable factual and legal resolution of the dispute” and “reflects a procedurally sound resolution.”

The judge also noted that both parties “reached their agreement following highly contested, however brief, litigation, and they reached their agreement following what they report to have been several rounds of in-depth negotiations.”

The blockbuster merger would create one of the largest entertainment companies in the world, according to the New York Times, and would give Paramount control over CNN and CBS News, though Paramount has agreed to create a board to ensure the editorial independence of both outlets.

The merged company would also own two major streaming services, Paramount+ and HBO Max.

Misty Severi is a news reporter for Just The News. You can follow her on X for more coverage.