A federal judge has officially approved the $110 billion merger between Paramount Skydance and Warner Bros. Discovery. This removes the final legal obstacle for the historic media consolidation. U.S. District Judge Araceli Martínez-Olguín issued her greenlight in Oakland. She approved the consent decree negotiated between Paramount and a coalition of 12 state attorneys general led by California Attorney General Rob Bonta.
This approval paves the way for the new media giant-often referred to as “ParaBros”-to finalize the transaction shortly after October 5, 2026. The swift progression allows Paramount to avoid ticking fees. These fees would have begun accruing to Warner Bros. Discovery shareholders at a rate of about $7 million per day starting October 1.
Resolution of Antitrust Challenges and Settlement Terms
The court’s decision ends an antitrust lawsuit filed in July. The suit had threatened to halt the multi-billion-dollar combination due to concerns over market dominance in cable programming and blockbuster films. While critics and the “Block the Merger” coalition argued the agreement lacked structural remedies, Judge Martínez-Olguín defended the compromise.
“The Court finds the proposed consent decree represents a reasonable factual and legal resolution of the dispute,” Judge Martínez-Olguín wrote in her ruling. “The parties’ proposed consent decree falls within the scope of the case made by the pleadings.”
Under the five-year settlement terms, the combined company must meet several requirements:
- Release at least 30 theatrical films per year during the first two years, increasing to 32 films annually for the following three years.
- Invest a minimum of $300 million per year in U.S. film and television production, totaling $1.5 billion.
- Maintain operations at the historic Melrose Avenue campus in Hollywood and the Warner Bros. lot in Burbank consistent with past practices for at least five years.
- Establish an independent oversight board to monitor editorial independence at CNN and CBS News.
- Negotiate distribution for basic cable networks separately, unless distributors request otherwise in writing.
- Allocate funds for affected entertainment workers, independent film support, and career training programs.
Executive Leadership Changes and Streaming Integration
With legal clearance secured, Paramount CEO and controlling shareholder David Ellison is moving quickly to restructure the executive team. In a corporate shakeup announced alongside the judge’s decision, outgoing Mattel CEO Ynon Kreiz has been appointed co-CEO alongside Ellison. Kreiz will oversee day-to-day operations, while Ellison focuses on long-term strategy, creative direction, and technology.
Additional leadership changes include the departure of Cindy Holland, chair of Paramount’s Direct-to-Consumer business. Her exit allowed HBO and HBO Max content chief Casey Bloys to take control of combined streaming operations, including Paramount+ and HBO Max. Meanwhile, WBD CEO David Zaslav will exit the company after the merger is complete, receiving a substantial severance package.
Financing the Mega-Acquisition
To fund the cash-and-debt transaction-which values WBD at $31 per share-Paramount launched a $44 billion bond offering. The debt financing and equity arrangements provide the capital needed to cash out WBD stockholders and finalize the corporate integration.
Class B stock listings for the combined entity will move from the Nasdaq to the New York Stock Exchange under the new ticker operations starting October 6, 2026. This marks a monumental shift in the global entertainment and media landscape.
