A United States judge has approved Paramount's $110 billion acquisition of Warner Bros, despite concerns regarding media consolidation. On September 30, US District Court Judge Araceli Martinez-Olguin approved a settlement between Paramount, Warner Bros, and a coalition of 12 states that had sued to block the merger. In her ruling, Martinez-Olguin described the deal as a 'fair, reasonable, and good faith approach to address the competitive harms.'
The coalition of states, led by California, argued that the merger would stifle media competition, estimating that nearly one-third of all theatrical releases and basic cable programming would be consolidated. However, the states abandoned their lawsuit in favor of a settlement on September 21.
The five-year agreement requires Paramount to commit to 30 theatrical releases per year in the US and mandates that negotiations for Warner-owned channels remain separate from those for Paramount-owned channels. Additionally, the settlement includes the establishment of a five-member panel to safeguard the editorial independence of CNN and CBS.
Skeptics have raised concerns about the merger placing significant control of US media in the hands of David Ellison, who leads Paramount. Under the agreement, Ellison will oversee appointments to the board responsible for news independence. Ellison, the son of Oracle founder Larry Ellison, has ties to pro-Israel causes and the Trump administration.
Critics, including Senator Elizabeth Warren, have expressed concerns about the implications of allowing a single conglomerate to dominate American news and entertainment. In contrast, California Governor Gavin Newsom had urged the state’s Attorney General to pursue a settlement rather than block the deal.
Paramount won control of Warner Bros after a bidding war with Netflix in February, acquiring various media and entertainment services, including Warner Bros Pictures, CNN, and HBO Max. The Trump administration approved the deal without alterations in June.