According to Deadline.com, a federal judge has approved the settlement between Paramount Skydance and a group of state attorneys general who previously sought to block the merger between Paramount and Warner Bros. Discovery (WBD). The report also states that this approval represents the last major hurdle for the merger. However, the settlement is not yet officially finalized, as Judge Martínez-Olguín is allowing more than a week for any opposing briefs to be filed. The deadline for Paramount and the group of state attorneys general to respond is September 28th at 12 PM PT.
Judge Araceli Martínez-Olguín wrote, “The Court finds the proposed consent decree represents a reasonable factual and legal resolution of the dispute. The parties’ proposed consent decree falls within the scope of the case as pleaded. The Court recognizes that this proposed consent decree reflects a compromise of the claims short of full adjudication – compromise that may leave some dissatisfaction for both sides and the public but a compromise that saves the risk, time, and expense of litigating through trial.”
The report indicates that Paramount Skydance CEO David Ellison previously mentioned that the formal merger between the companies would take about two weeks, suggesting it could be completed by next week. Additionally, starting October 1st, Paramount will incur a $7 million-per-day fee owed to Warner Bros. Discovery (WBD) shareholders if the deal remains unclosed.
Twelve state Attorneys General, led by California’s Rob Bonta, moved to file an antitrust case against the merger. However, both parties reached a settlement. Bonta stated regarding the settlement, “We are pleased the court has approved our settlement. Our settlement with Paramount resolves our antitrust concerns in every market we brought in our case, protects competition and consumer choice, and centers the needs, concerns, and futures of California workers.”
According to Variety.com, former Mattel CEO Ynon Kreiz will join Paramount Skydance as co-CEO alongside David Ellison starting October 5th. Kreiz will help oversee daily operations and the combined business, while Ellison will reportedly focus on strategy, creative direction, and technology functions. Additionally, Variety reports that Tuesday, October 6th, is the tentative closing date for the deal.
As previously noted by PWMania.com, WBD is the main broadcast partner and minority owner of AEW, while Paramount Skydance serves as the primary streaming partner for TKO-owned UFC. Tony Khan has expressed optimism about the merger, stating that it “will make AEW stronger,” and he has praised Paramount Skydance CEO David Ellison, with whom he has collaborated in the past through the NFL.
